June 2015 Presentation
Market opportunity
The Market
360 ThousandRestaurants
$220 Billionby Americans
$70 BillionThrough
Takeout/Delivery
GrubHub’s Share 30 Thousand
Restaurants forTakeout orDeliveryNearly $2
Billion Gross Food Sales
5 MillionActive Diners
180 ThousandDaily Orders
Huge Market Potential
$2 Billion Gross Food Sales
39% YoY Growth
5 Million Active Diners47% YoY Growth
30 Thousand Restaurants41% YoY Growth
GrubHub’s Growth
So what’s the problem?
GrubHub’s 2-Sided Network
“How often do you to order takeout/delivery online from a restaurant you’ve never had before?” Never 15.6%
Seldom 37.5%
Sometimes 25%
Often 12.5%
Almost Always
9.4%
12.5%
9.4%
So what’s the problem?
1. User Engagement
2. Restaurant Acquisition
3. Market Share Retention
Competitive MapStrong UX
Low Volume
Weak UX
High Volume
Benefits delivery.comGrubHub / Seamless
Eat24 TryCaviar
Rewards & Loyalty Program
Picture Menu
“Try New” Recommendations
Most Popular Dishes
Most Liked Dishes
Feature comparisons
Filter Button - “Try Something
New”
Picture Menu - “Great
Discoveries”
Loyalty Program - “Most Valuable
Foodie”
Our solutions
SWOT analysis
1. Leverage largest restaurant-diner network2. Proven Track Record- Restaurants: 41% YoY Growth- Customers: 47% YoY Growth
Strengths
1. Increased discoverability is just a transfer of wealth until it leads to more 2-sided acquisition2. Loyalty Program will cut into profit margin
Weaknesses
Promoting New Restaurants to Diners will:1. Increase GrubHub’s restaurant
acquisition 2. Increase Diner engagement and
use
Opportunities
1. Increasing discoverability may harm markets with limited options2. Users may be risk averse to trying new places
Threats
+ Helpful -
+
Exte
rnal
--
In
tern
al
+
Strengths Weaknesses
Opportunities Threats
Extensive 2-SidedPartner Network
Track Record
Discoverability = Revenue
Cost of Loyalty Program
Limited Markets may suffer from Initiative
Improve Restaurant Acquisition
Increase DinerEngagement
Improve 2-Sided Retention
- Harmful +
+ Helpful -
- Harmful +
+
Exte
rnal
--
In
tern
al
+
Deliverable Goal MetricEffort1 = High10 = Low
Impact1 = Low10 = High
PriorityHighest to
LowestTimeline
Filter Button(Try Something New)
Increase Engagement
3-5% of Daily Orders
9 4 36 = 1st Q1
Picture Menu(Great Discoveries)
Increase Engagement
5-7% of Daily Orders
5 7 35 = 2nd Q2-Q3
Loyalty Program(Most Valuable Foodie)
Increase Retention
10% NPS Growth
4 8 32 = 3rd Q3-Q4
Feature Prioritization Matrix & Metrics
Timeline
Restaurant Discovery Impacts
1. User Engagement2. Restaurant Acquisition3. Two Sided Retention
Stakeholder Meetings
Feature #2 - Great Discoveries Picture Menu
Gather Data
Analyse Data
Feature #3 - Rewards & Loyalty
Program
Business Analysis Loyalty
Percent
Feature #1 - Filter Button
Create Algorithm
Stakeholder Matrix
MANAGEExecutives
SATISFY
Developers
MONITOR INFORM
Marketing
Operations
Strong Influence
More Interested
Weak Influence
Less Interested
Sales
UX Design
Restaurant Partners
Users
Project Roadmap - Feature #1“Try Something New” Filter Button
Update Database
Create Filter
July 2015 August September
Plan
Build
UX Testing Build
QA & Improvements QA FixesDevelo
pm
ent
Team
1 Quarter
Project Roadmap - Feature #2“Great Discoveries” Picture Menu
Gather User Data
Analyze Preferences
October 2015 November December January 2016 February March
Plan
Plan
Create Algorithm
Prototype Picture Menu
Build
Usability Testing & Optimize UX
Integrate Algorithm
Plan
Plan
Build
Data
Team
Desi
gn T
eam
QA & Improvements
QA & Improvements QA
QA
Fixes
Fixes
Add Ons
Add Ons
2 Quarters
Project Roadmap - Feature #3“Most Valuable Foodie” Loyalty Program
Optimize Loyalty Rates
Determine Reward Ratio
March 2016 April May June July August
Plan
Plan
QA & Improvements
Update Account Details
Integrate Loyalty Points with Payment
QA & Improvements
Build
Busi
ness
Team
Develo
pm
ent
Team
QA
QA
Fixes Add Ons
Build
2 Quarters
(In Thousands) Year End 2013 Year End 2014 Projected 2015 Updated 2015
Diners 3,421 5,029 7,380 7,653
Gross Food Sales 1,014,900 $1,787,400 2,449,617 2,484,842
Sales and Marketing
37,347 128,710 108,573 111,433
Development and Operations
34,173 62,509 93,943 97,496
Net Income (before taxes) $14,889 $44,984 $75,903 $77,285
Projections
Potential Future Developments
Expand Loyalty Program
Partner With Third-Party Vendors For Point Redemption
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