Strategy question
I am setting up a restaurant. How should I decide whether to list my restaurant on Zomato or Swiggy?
- Swiggy
- Strategy
- Hard
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What this question tests
Strategic decision making from the customer's perspective, not the platform's: can you build a clear decision framework a restaurant owner would actually use.
How to approach it
- Reframe the question as a restaurant owner's decision problem, not Zomato's or Swiggy's, since the interviewer is asking you to advise, not to pick a side as an employee.
- Identify decision criteria: commission rates, delivery reach in the owner's specific area, order volume potential, and the platform's tools for menu and promotion management.
- Note that both platforms have similar core offerings in most Indian markets, so the deciding factor is often hyperlocal, which platform has stronger customer density near this specific restaurant.
- Propose a practical method: compare commission structures for the exact order volume this restaurant expects, and check which platform has more competitor restaurants and customer reviews in the immediate neighborhood.
- Recommend starting on both, if feasible, since exclusivity is rarely required and testing both reveals real performance rather than guessing upfront.
- State the metric the restaurant should track, net margin per order after commission on each platform, to decide long term.
What a strong answer includes
- Treats this as a real business decision with concrete criteria, not a superficial comparison of brand names.
- Recommends testing both rather than picking one from theory alone, which is often the practical real world answer.
- Uses net margin per order as a concrete decision metric, not vague reach or popularity.
Common mistakes
- Answering with a personal preference or hearsay about which platform is generally better.
- Ignoring hyperlocal variation, since platform strength varies heavily by neighborhood in India.
Likely follow-up questions
- How would this decision change for a premium restaurant versus a budget one?
- What would make the restaurant switch platforms after three months?
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Learn the skill behind it
Chapters of the AI PM course that teach what this question tests.
- Chapter 4: Discovery and strategy for AI products
- Chapter 9: Prove it paid off: outcomes, economics, and pricing
- Chapter 14: Get the job: the AI PM interview loop