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Our current delivery fee model allows the fee to change based on the total value of the Order but it does not consider other influencing factors. As a result, markets miss out on opportunities to optimize their revenue. This document proposes a dynamic delivery fee model, where fees are adjusted based on specific conditions like weather, payment method, customer loyalty tier, etc. This change aims to create a more adaptive and efficient pricing strategy.

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Custom Modifier Delivery Fee Adjustment

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Hypothesis

 These are some of the hypothesis to be validated in Discovery:

1. Revenue Growth

   1. Modifiers can have a positive impact on revenue

   2. RBE has revenue growth goals that will benefit from value modifiers to delivery fees.

   3. Additional delivery costs will not impact current revenue streams.

2. Fees modifiers setup

   Delivery Fee Modifiers Management Dashboard

   • Allows creation of delivery fee modifiers that adjust the fee value based on the modifier configuration.

   • Rationale: Allows for fee value flexibility. The market must should be able to define its own modifiers and how they impact the fee value.

   • The Modifier value can be nominal or percentual.

   • The Modifier Value can increase or decrease the fee value.

   • All restaurants in a given market will have the same available modifier options.

   • Modifiers examples: Bad Weather, Reduced Restaurant Capacity,

     Reduced Delivery Capacity

   • Business Value: Potentially increased revenue during adverse conditions.

3. Peak Time Delivery Fee Adjustment

   • Description: Adjust delivery fees during peak hours to reflect higher demand.

   • Rationale: Peak times increase the delivery load and operational costs.

   • Business Value: Optimizes revenue during high-demand periods.

4. Loyalty-Based Delivery Fee Discounts

   • Description: Offer reduced delivery fees for loyalty program members based on their loyalty tier.

   • Rationale: Rewards customer loyalty and encourages frequent ordering.

   • Business Value: Increased customer retention and satisfaction.

5. Payment Method-Based Delivery Fee Adjustment

   • Description: Adjust delivery fees based on the customer's chosen payment method.

   • Rationale: Some payment methods might incur higher or discounted transaction fees.

   • Business Value: Offsets transaction costs and encourages use of preferred payment methods.

6. Seasonal Fee Adjustments

   • Description: Temporarily increase or reduce delivery fees during specific time periods.

   • Rationale: Enable time-based promotional periods.

   • Business Value: Potential to boost sales during promotions.

7. • Description: Provide Markets with High Demand Period, Reduced Delivery Capacity, Guest Loyalty Tier, Payment Method, Seasonal Period.

8. Fee Modifiers Management

   • Markets should have a dashboard to monitor and configure dynamic delivery fees.

   • Must allow modifiers to be

     applied

     activated/deactivated to one or many restaurants.

   • Must allow modifiers to be enabled or disabled indefinitely.

   • Must allow scheduling to automatically enable and disable a modifier.

   • Must allow modifiers to be enabled indefinitely.

   • Rationale: Allows managers While a modifier is enabled all Orders created during that period will contain the active modifiers.

   • Modifiers can still be applied to specific Orders even if the modifiers is not currently active for a given restaurant.

   • Managers should be able to respond to changing conditions in real-time.Business Value: Improved operational efficiency and revenue management.

9. Delivery Fee Modifiers on CartTransparency

   • Description: Show current modifiers added to the Delivery Fee on the Cart.

   • Rationale: Transparency for Guests.

   • Business Value: Low - increases Increase clarity and transparency for guests.

   • Users want to know the details of the fees they are paying.

   • RBI wants to be transparent with guests regarding detailed costs.

10. Analytics Tracking of Fee Modifiers on Orders

    • Description: Track Must be able to track and analyze Orders created with fee modifiers to gain insights into their adoption and effectiveness.

    • Analytics must contain all modifiers added to the fee, their configured value, and the value added to the Order Total.

    • Rationale: Provide data-driven insights to evaluate the feature's success and identify areas for improvement.

    • Business Value: Medium. Useful for long-term analysis and continuous improvement but not immediately necessary for the feature launch.

11. Audit Trail for Fee Modifiers changes

    • Description: Maintain Must have a log of modifier changes for security and compliance auditing purposes.

    • Must be clear if the change was manual or automatic (scheduled)

    • Changes include:

      • Modifier created

      • Modifier removed

      • Modifier value configuration updated

      • Modifiers created or removed

      • Modifier activated or deactivated for a given restaurant (manual or automatic changes). Must be clear if the change was manual or automatic (scheduled)

    • Rationale: Provides transparency and accountability for modifiers changes.

    • Business Value: High - Enhances issue-solving and data-driven insights

      • .

12. Show Fee Modifiers on the Support Tool

    • Description: Ensure that any fee Support Operators need all detailed information on Guests Orders

    • Fee modifiers applied on Orders are must be shown in the Support Tool.

    • Rationale: Enable Support Operators to see how the Delivery Fee of a specific was changed.

    • Business Value: High - Provides Support Operators with full information about an Order, allowing them to give more adequate support to guests.

📈 Success Metrics

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