Zomato Driver partners are dropping out of a city. How do you figure out what's going on?

For product managers, problem-solving extends far beyond identifying surface-level issues - it involves digging deep into data, understanding user behavior, and developing strategies that enhance user engagement and retention.

This newsletter edition provides a roadmap for product managers tackling such issues, using the example of Zomato driver partners dropping out of a city. By breaking down the problem through clarifying questions, cohort analysis, and distinguishing between acquisition, engagement, and retention challenges, product managers can effectively solve such problems. Let's deep dive.

To figure out why Zomato driver partners are dropping out of a city, we will start with clarifying the problem in depth.

Step1: Clarification

Start by clarifying specific points:

• By "dropping out," do you mean the Daily Active Users (DAU) of Zomato drivers who are available to accept orders has decreased? Or does it refer to drivers who have stopped using the platform entirely?
• Is this a large city or a smaller one where cross-border delivery might be possible?
• Is the drop significant and beyond normal fluctuations?
• Is it a sudden or gradual decline?
• Are nearby cities also experiencing a similar drop?

Step 2: Analysis

To analyze the issue, consider the journey of a Zomato driver partner:

1. Apply to be a partner
2. Pass screening and onboarding
3. Log in to the app and wait for orders
4. Accept an order
5. Successfully deliver the order

A Zomato driver would only count toward the DAU if they reach step 3.

Since we assume this is not a seasonal fluctuation and represents a significant drop, start by breaking down the problem into categories:

• Acquisition Problem: If driver attrition is normal but the recruitment of new drivers has declined, look into issues with onboarding or decreased interest in joining Zomato in this area.
• Engagement Problem: If fewer drivers are becoming available or logging into the app, examine factors affecting driver motivation or availability in the city.
• Retention Problem: If existing drivers are leaving the platform at higher rates, investigate the reasons why they might be abandoning Zomato altogether.

Cohort analysis can help differentiate whether drivers have moved to other areas, switched platforms, or stopped working for Zomato entirely.

Step 3: Investigation of Causes

If the issue appears to be with Engagement, consider internal versus external factors:

Internal Factors might include:

• Feature Releases or Bugs: New app updates may have introduced glitches or crashes in this city.
• Policy or Incentive Changes: If Zomato recently adjusted incentives, this could impact drivers’ engagement.

External Factors might involve:

• Demand Levels: Reduced customer orders might lead drivers to seek more active markets.
• Environmental Factors: Events such as bad weather, road closures, or regulatory restrictions.
• Competition: Competing food delivery platforms like Swiggy could be offering better incentives or support.
• Public Perception: Negative press or local campaigns could be influencing drivers' decisions.

Solution

Based on the root cause, the solution could vary:

• For feature bugs or crashes, work with the engineering team to patch or roll back changes.
• For incentive-related issues, collaborate with the incentives team to reconsider or improve incentive programs.
• For demand-related issues, consider promotions or discounts to encourage more customer orders.
• If regulations are a factor, work with local government relations to address concerns and keep drivers informed.
• If the issue is with competition, consider revising policies, incentives, or adding features to make Zomato more attractive.
• For public relations issues, coordinate with PR to manage public perception and keep stakeholders updated.

In short, determine whether the drop is due to acquisition, engagement, or retention, analyze the internal or external factors, and propose targeted solutions accordingly.

How will you solve this problem? Comment below.

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