Online Food Delivery Platforms

Market sizing
New answer on Feb 22, 2021
7 Answers
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Anonymous A asked on Feb 20, 2021

Hi, should I base myself on individuals or households while calculating the market size (number of orders) of online food delivery platforms?

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Raj
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replied on Feb 21, 2021
Strategy&| ex-interviewer | 170+ coached over career |95% success @ MBB, S&, RB, LEK, OW, Big4 [SUCCESS STORIES BELOW]

I'd suggest thinking through whether consumption patterns differ substantially between HHs and individuals. This seems likely.

One could argue an individual will order both on a standalone basis and in a group (HH) and so the smallest unit to model would be per individual.

Then you could always segment this into different segments of individuals e.g.

1 - young, solo living

2 - couple

3 - young family

4 - older couple

Within each of these segments you can then assume order frequency and also taking into account # individuals / HH

Hope that makes sense

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Clara
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replied on Feb 22, 2021
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Hello!

I would always recommend you to give it a shot and then post it here, this would help you the most.

This is a very typical market sizing case, where the key steps are:

  1. Calculate the total population
  2. Calculate the % of population that could be interested in this product (this could be done by clustering -the classical ones are age groups, purchaching power, etc.-)
  3. Calculate the % of the total adressable market that any firm in particular could have -in case it´s asked only-.

Hope it helps!

Cheers,

Clara

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Henning
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replied on Feb 20, 2021
Bain | passed >15 MBB interviews as a candidate

Why not both? You can split your market in single household orders and family orders?

However, you should also assume a different consumption behavior. if you're assuming that the family just orders a multiple of the single household based on the average number of familty members you can just do it on an individual level.

I'd assume a family orders less per head than a single household, because they cook more often and more healthy food.

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Adi
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replied on Feb 20, 2021
Accenture, Deloitte | Precision Case Prep | Experienced Interviewer & Career Coach | 15 years professional experience

Consider both..individuals will order more frequently per week, households order less frequently but their average order value with be higher per order.

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Udayan
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replied on Feb 20, 2021
Top rated McKinsey Case & PEI coach/Multiple real offers/McKinsey EM in New York /6 years McKinsey recruiting experience

Either works - just be clear about the assumptions on order value and frequency for each.

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Gaurav
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replied on Feb 21, 2021
Ex-Mckinsey|Certified Career Coach |Placed 500+ candidates at MBB & other consultancies

Depends only on how you want to structure it and how you reason it - the choice is yours.

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Ian
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replied on Feb 20, 2021
MBB | 100% personal interview success rate (8/8) and 95% candidate success rate | Personalized interview prep

Hi there,

Either, or both, could work! The most important is that your assumptions are reasonable and that you understand where you/your household fits in terms of segmentation!

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Raj gave the best answer

Raj

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