How can you increase the basket value for Uber Eats Orders
The basket value for Uber Eats orders has been steadily decreasing over time as we have been growing our number of orders. This impacts both the restaurants on our platform as well as Uber’s revenue which comes from the commission we take on each order. We’d like to reverse this trend.
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155 views
The basket value for Uber Eats orders has been steadily decreasing over time as we have been growing our number of orders. This impacts both the restaurants on our platform as well as Uber’s revenue which comes from the commission we take on each order. We’d like to reverse this trend.
in Strategy by (12 points) | 155 views

1 Answer

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The basket value is the actual value that a customer brings in to UberEats checkout page. As per the question above the number, orders are growing however the basket value is decreasing over time. The basket value can down for the following different and combination of reasons 

  • Existing customers 
    • are ordering food that is less in value 
    • Number of items orders in a order is coming down
  • New customers
    • are ordering food that is less in value 
    • Ordering just one item

There can be many reasons for new customers such as new market penetration (such as new geography or students) who may have different reasons for such behavior. For the purpose of this use case, let's assume that its the existing customer who has reduced the basket value. Let us also assume that not only they are ordering fewer items in an order they have also started ordering items of less value. 

 
Let us analyze the reason behind customer started ordering items of lesser value or less number of items
  1. The items are expensive (inclusive of items such as packaging charges, delivery charges) 
  2. There are cheaper alternatives 
  3. The restaurants themselves have reduced the price 
  4. The customer is diet conscious
To resolve the issue mention above, we can look at the following options 
  1. Waive of delivery and packaging charges for 
    • Orders above certain value 
    • For regular customers (For every order that is placed within a week of previous order) 
    • Customers who are on a loyalty program
  2. Cross-sell and up-sell certain related items (Curry with main dishes) 
    • Tag dishes with main dishes so that it can be prompted. 
    • Cross-sell and up-sell beverages (such as water, coffees) 
    • Provide discounts on cross and upsell items 
  3. Diet food and special foods 
    • Tag dietary information(with approximate calories) and display in on the app so that customer can compare two foods
    • Acquire restaurants that provide healthy foods 
    • Prepare such healthy foods in the cloud kitchen. 
  4. Provide discounts 
    • for orders above certain value 
  5. Othes
    • Increase the price of products in case the demand is higher than than the supply available. 
    • Provide items with additional options (such as extra topping on a pizza) 
To implement the above, we have to build the following products or features (in case if it is already not built) 
  1. Discount engine that will provide discount either on order value or on delivery/packaging charges and disconunt will be applied 
    1. on order based on order value,
    2. Previous orders 
  2. A loyalty program for customers 
  3. Setup the relationship between dishes and tag dishes as main dish and side dishes 
  4. Ability to capture the dietary information about any dish
  5. Cross-sell and up-sell program (item suggestion on the main screen based on previous order and item suggestion during checkout)
  6. Come up with a model for cloud kitchens that will predict the items to be made in a cloud kitchen at different geographies and different time along with the pricing, 
If we were to prioritse, then I would built the feature to create relationship between the dishes and cross-sell and up-sell since from a product perspective is self-contained and no dependency and easier to build. 
 
 
 
 
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