Product design question

What are the key Metrics to measure the performance of a company in food delivery business and how can we improve the ones related to churn rate?

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What this question tests

Whether the candidate can build a metric tree for a food delivery marketplace and connect it directly to a churn reduction plan.

How to approach it

  1. Clarify whether churn means customer churn or restaurant/driver churn, and define it precisely, for example no order in 60 days.
  2. Lay out a metric tree: acquisition (new customers), engagement (orders per week, average order value), retention (30 and 90 day repeat rate), and unit economics (contribution margin per order).
  3. Segment churn by cohort, since new users and power users churn for different reasons.
  4. Diagnose likely drivers: late or wrong deliveries, thin restaurant selection, price versus competitors, checkout friction.
  5. Pick two or three churn levers and map each to the driver it fixes.

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