Strategy question
Uber Eats is stealing market share of DoorDash. What would you do?
- Strategy
- Hard
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What this question tests
Tests competitive response strategy: diagnosing why share is being lost and proposing a defensible, prioritized response rather than a reactive price war.
How to approach it
- Clarify the signal: is DoorDash losing share in orders, restaurant selection, delivery speed, or price, since the response depends on which lever is slipping.
- Hypothesize causes: Uber Eats may be winning on selection (cross-sell from Uber rides), delivery speed, or bundled membership value (Uber One).
- Assess DoorDash's actual advantages: often broader restaurant selection and stronger market share in suburban and non-major-metro areas.
- Propose options: deepen restaurant exclusivity deals, improve delivery speed through better dasher allocation, or strengthen DashPass bundling and value.
- Prioritize based on where the loss concentrates: if it is membership-driven (Uber One bundling rides and eats), respond with DashPass value rather than a pure price cut.
- Flag the risk of a price war: matching Uber Eats on discounts erodes margin for both without solving the underlying loyalty or selection gap.
What a strong answer includes
- Diagnoses which specific lever (price, selection, speed, or bundling) is driving the share loss before proposing a response, rather than assuming it is only about price.
- Uses DoorDash's known real strength, broader restaurant selection and suburban market share, as the basis for the response instead of ignoring existing advantages.
- Names Uber One's bundling of rides and delivery as a plausible real threat, since cross-product bundling is Uber's structural advantage DoorDash cannot easily match.
- Explicitly rejects an immediate price war as the default response, explaining the margin risk.
Common mistakes
- Defaulting straight to 'lower prices to match' without diagnosing the actual driver of share loss.
- Ignoring DoorDash's existing strengths (selection, suburban penetration) that a response strategy should build on.
Likely follow-up questions
- How would you measure whether a DashPass value improvement is actually recovering share?
- What would you do if the share loss turns out to be concentrated in one specific city or region?
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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