I went straight to demand-side stuff like market size and competition, then kind of remembered mid-answer that supply-side matters just as much for a marketplace.
Start by clarifying the context: are we evaluating a new geographic market or a new product vertical? Then structure your answer around a framework that covers market attractiveness, competitive landscape, operational feasibility, and strategic fit. Tie your analysis back to DoorDash's core strengths in logistics and local commerce.
Pro tip: Show that you understand DoorDash's business model by emphasizing unit economics and the three-sided marketplace (consumers, merchants, Dashers). Mention that market entry decisions should be data-driven and iterative, not just based on TAM.
Assess the total addressable market (TAM), growth rate, and customer demand. Consider factors like population density, smartphone penetration, and existing delivery habits.
Analyze key competitors (e.g., Uber Eats, local players), their market share, strengths, and weaknesses. Determine if there's a differentiated opportunity for DoorDash.
Evaluate logistics: can we build a reliable Dasher network? What are the regulatory, legal, and infrastructure requirements? Consider payment systems, address accuracy, and traffic patterns.
Model the cost to acquire customers and merchants, delivery costs, and expected order frequency. Ensure the market can support sustainable unit economics.
Check alignment with DoorDash's mission and long-term strategy. Identify risks such as regulatory changes, cultural barriers, and potential cannibalization.
AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.