Business Analytics Case Study by X Delivery Company in Silicon Valley...

1. X Delivery Company
Analytics Case Study - April 2020

2. Agenda - Let’s Dive into It
Challenge 3
Intro:
This data analysis is based on one Month of data during X company early operations primarily in the Bay
Area (San Jose, Palo Alto, and Mountain View). The intent is to find out business insights around X
Company and its business operations. This will cover primarily in two angles: the Merchants/Partners and
X Company Delivery experts.
Merchants/Partners
● Customer Obsessed : Who are most popular merchants - we need to deepen our relationships?
● Fast Delivery: How Long is it taking us for us to get to our customers to have their food delivered?
Dashers/DoorDash Employees
● Attractiveness: Is the Amount of Tip that Experts receive per delivery attractive and how much can
they possibly make on a given day?
● Operation Volume: How many deliveries do delivery experts usually deliver on one particular day?
(Is it consistent on a daily basis - a metric to look at productivity per dasher)

3. Popular Merchants → More Deliveries
Top Volume and Total Amount Gross comes from Palo Alto
Palo Alto and Mountain View Customers - Avg Order Amount is
higher (willing to pay premium)
We see 63% of our order volume is coming from
Palo Alto which generated in over $600k in Customer
Order total spent.
Mountain View average order amount is higher than
Palo Alto and San Jose. But smaller volume of
orders.
We want to figure out where our Customers ordering from and from which Merchants

4. Merchants by Restaurant ID
These are the merchants customers are obsessed
about. These merchants are generating revenue
At the end of the day, Customers are spending $1310
daily on Merchant 9 (average)
Average Amount Daily Total Customer Spend: is defined as order total amount by Customers on a daily (average levels)
There are Merchants we see unbelievable amount
of orders on a daily basis (36 average orders)!

5. Challenge 3
Restaurant ID Total Orders
Order Total
Amount
8 744 $38,135
20 716 $32,520
9 713 $39,173
107 491 $26,083
12 472 $15,422
68 415 $19,281
10 381 $21,838
63 375 $27,169
28 245 $11,737
27 239 $10,873
Restaurant
ID Total Orders
Order Total
Amount
194 186 $9,114
170 174 $8,128
201 105 $2,802
190 89 $2,214
183 88 $4,921
271 72 $3,013
303 67 $3,375
186 60 $2,742
139 58 $3,106
Top Order Restaurants in Palo Alto Top Order Restaurants in San Jose
We need to make sure to deepen our relationships from the
Top Volume & High Order Amount Merchants
Restaurant
ID Total Orders
Order Total
Amount
43 212 $6,589
98 201 $10,711
44 189 $7,746
76 151 $8,680
30 149 $8,449
45 136 $7,986
87 123 $7,092
41 98 $7,540
77 92 $4,838
Top Order Restaurants in Mountain View
Order total amount: defined as Order Total Spent by Customer

6. Experts make median $2.55 Tip per Delivery
Tip Amount as a Percent of Total Order Amount
Median Amount Across Regions: 5.0% (50 Percentile)/ 9.9% (75 Percentile)
San Jose: 7.8%/11.4%
Palo Alto: 5.0%/8.6%
Mountain View: 5.0%/9.9%
Median Amount Across Regions: $2.55/$4.45
San Jose: $2.99/$4.81
Palo Alto: $2.41/$4.27
Mountain View: $2.6/$4.62

7. Experts do on 6.2 average deliveries a day
Day of Delivery
Middle Range of Experts can make $15.8 Tip Per Day and Top 25% can make $27.70 Tip Per Day*
Avg Deliveries per day per driver has variability- higher avg deliveries is correlated with lower number of
drivers, and lower when higher number of drivers (see boxes highlighted in chart)
* Avg Tip per Delivery Multiply Avg Deliveries per day

8. 45 mins Delivery Time - shorten restaurant to customer drive time
Quartiles
Median (Q1-
Q3)
Customer to
Restaurant
Place Time
Customer to
Driver Arrive
Restaurant Time
Customer Place to
Delivered Time
25% 0:01:15 0:11:24 0:33:11
50% 0:03:47 0:19:08 0:44:30
75% 0:14:19 0:33:41 0:59:35
Time Duration: displayed in hour, mins, seconds
Customer to Restaurant Place time: Difference between Customer Placed time and Placed within Restaurant
Customer to Driver Arrive Restaurant Time: difference between Customer Placed time and Driver arrived at restaurant
Customer Place to Delivered Time: difference between customer placed time and delivery arrived to Customer
We are getting to our Customers from placement of their
Order to Delivered time a little bit less than 45 minutes.
Our systems in sync from Customer ordering on our site
platform (App) to Restaurants Receiving order is about 3
mins.
The separation in time is much greater after dasher
arrives at the restaurant to delivery at customer place
50 - Percentile is showing up to 25 mins here. This is
the biggest chunk of time in the journey

9. Next Steps
1. Deepen partnerships with High Growth Merchants Identified
a. Think about ways we scale more business - more revenue growth opportunities
b. Can we do more advertising or delivery deal promotions with these Merchants
2. Ongoing Hiring - “Attractive Tip Amount for Dashers”
a. Marketing High Daily Tip Amount makes the job very attractive to candidates
b. Boosting a consistent pool of Dashers - we saw when we have less dashers -
average deliveries per dasher increase (however this can’t go too high or it will
cause burnout)
3. Drive towards Operational Excellence
a. Double down on driving consistent deliveries per dasher on daily basis
b. Double down on lessening the time between Dasher arrived at restaurant and
arrival time at customer