+1 vote
asked in Estimation by (13 points) | 775 views

1 Answer

+1 vote

Not sure if its the right way to answer such question but I would compare the cost associated with developing an app vs uber eats

Clarifying question

- Does the owner already has a site and a delivery service?

- Does the shop currently gets order via phone?  

- Does Uber eats exists in the area where the pizza shops are located

- Have we looked at the other factors like raw material cost and confirmed that delivery service is the path to move forward with?

Considering the shop doesn't have a site and doesn't have any means of online/ via phone order and we have looked at all aspects and delivery service via app is the next best step. Let's compare the cost incurred in both

Cost of Mobile AppCost of Uber Eats
Domain cost Rev-share or % cut uber would take 
Engineering cost of building the app & Maintenance of the app
Delivery cost: hiring of driver, renting of vehicle
Delivery management cost: let's say hire a person to make sure all order are delivered within a specific timeframe

From above, it would be wise to have a partnership with uber eats for delivery to make more revenue. 

answered by (158 points)
I would also consider costs like customer acquisition, customer retention and user analytics. Then I would do a break-even analysis w.r.t to additional sales and revenue share with Uber Eats. If the pizza shop owner has only 1-2 stores then Uber eats is the clear path. However at 6 stores, perhaps there are economies of scale to pursue the mobile app option.

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