Product RCA - Increase in Zomato Delivery Time
You are a Product Manager at Zomato. You observed a 20% increase in the average delivery time. Conduct a Root Cause Analysis (RCA) of this issue.
Problem Statement:
You are a Product Manager at Zomato. You observed a 20% increase in the average delivery time. Conduct a Root Cause Analysis (RCA) of this issue.
How are you being evaluated?
During this product execution interview question, the interviewer assesses your ability to approach problems in an organized and logical manner. The situation presented involves conflicting data that suggests a problem, and you are tasked with identifying the root causes and providing potential solutions. Your evaluation will focus on the following aspects:
Your thought process while diagnosing and solving a business problem: They are interested in how you approach complex situations, analyze data, and derive insights to address the issue.
Your ability to apply logical reasoning in identifying potential causes: The interviewer wants to see if you can logically connect the available information and consider various factors contributing to the problem.
Your ability to be exhaustive in listing possible causes: They want to assess if you can consider multiple angles and potential factors that might be influencing the observed outcomes.
Your ability to communicate clearly and concisely while delivering your analysis and recommendations: The interviewer wants to evaluate your ability to express your thoughts coherently, avoiding rambling or unnecessary tangents.
First, take a minute to think and write down the structure and approach of the answer. Next,
Describe the product:
Once you are clear about the question, start by explaining your understanding of the product. Cover the following things about the product,
What does the product do?
Who uses it?
How are they using it?
What pain point is it solving for the users?
Zomato is an online food delivery and restaurant discovery platform where users come to browse menus, place orders, track deliveries, review restaurants, and avail discounts. The platform not only enables convenient food ordering but also helps users discover new dining options, explore reviews, and make informed choices about where to eat. The primary target audience of Zomato includes working professionals, students, families, food enthusiasts, and anyone seeking convenience in dining or ordering food.
Restaurants on Zomato can list their menus, run promotions, receive customer ratings and reviews, and partner with delivery services to reach a wider audience. Customers can place online orders, book tables (in select markets), or simply use Zomato to find restaurant information like menus, ratings, cost, and photos.
Zomato currently operates on a commission-based marketplace model where it earns through commissions from restaurants on each order, delivery charges, advertising by restaurants, and subscription programs like Zomato Gold/Pro which provide benefits such as free deliveries and dining discounts.
Zomato also offers:
Zomato Pro/Gold (subscription-based loyalty program with discounts and free delivery benefits),
Zomato Dining (restaurant discovery and table booking service),
Hyperpure (B2B supply chain arm supplying ingredients to restaurants), and
Zomato Instant (pilot) (fast delivery of curated meals).
Zomato can be accessed from a desktop web, mobile web, and mobile app (Android and iOS).
Some of the major competitors of Zomato include Swiggy, Uber Eats (in some global markets), Deliveroo, DoorDash, Grubhub, Just Eat, and Foodpanda, depending on the region.
First, take a minute to think and write down the structure and approach of the answer. Next,
Sanity Check
Q) When we say increase in the average delivery time, do we mean from customer placing the order to customer receiving it?
A) Yes
Q) Have we changed anything with the logs recently about how we log things or capture data? Is it possible that there is a logging error here?
A) No, we haven’t changed anything as far as logging is concerned.
Ask Clarifying Questions
Q) I am assuming here we are talking about the food delivery business and not the grocery business?
A) Yes
Q) Is the increase sudden or gradual?
A) It has been a gradual increase over the past week.
Q) Is it specific to certain regions/cities?
A) The increase is more pronounced in metro cities like Delhi, Bangalore, and Mumbai.
Q) Is the increase uniform across all types of orders (small meals, large family meals, beverages)?
A) Yes.
Q) Has there been any recent change in delivery partner assignment algorithms or routing logic?
A) No.
Q) Are there external factors like weather, traffic, strikes, or road conditions?
A) Nothing unsual.
Q) Is the median delivery time also up, or is the average skewed by a few outliers?
A) The median is also up ~15%, indicating it’s a consistent issue, not just outliers.
Q) Is the issue more visible during peak hours (lunch/dinner)?
A) Yes, delays are more noticeable during lunch and dinner peak times.
Now, that I have all the clarifying questions answered, I will share the outline of the framework that I will follow to arrive at the root cause:
I will first look at the,
External Factors (Weather, Traffic, Competitors), followed by
Demographics Features (Impact on specific locations or customer segments).
Next, I would look at the Internal Factors (Tech release, Algorithm changes, Incentives).
Finally, I will go through the User Journey step by step (Restaurant → Agent → Customer).
External Factors
Q) Any competitor launches or incentive hikes attracting delivery partners away?
A) Nothing that we know of.
Q) Any government regulations, curfews, or city restrictions affecting travel?
A) No.
Q) Any unusual weather events?
A) No big deviation.
Q) Is there any seasonality pattern (festivals, IPL, public holidays)?
A) No.
Q) Is there any tech changes done by 3rd party API or products which are integrated in zomato, that may lead to increase in delivery time?
A) No.
Demographics Factors
Q) Is the issue tied to any specific demographic segment or location?
A) Yes, delays are higher in urban metros compared to Tier-2 cities.
Q) Is it related to certain types of restaurants (fast food chains vs. local outlets)?
A) No.
Internal Factors
Q) Any recent tech releases or algorithm changes?
A) Nothing major.
Q) Any increase in system bugs, app crashes, or support tickets?
A) No major system issues reported.
Q) Any incentive or payout structure changes for delivery partners?
A) Nothing major.
Q) Any sudden spikes in order volumes?
A) No major change.
Q) Have there been any reported issues or system outages at the data center?
A) No, all systems are functioning properly, and we haven't experienced any outages.
User Journey
Now, let’s go step by step through the Zomato order flow and see where delays are happening: