⏮️ Context

Optimizing Revenue with Dynamic Delivery Fees

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. There is a need to investigate this opportunity in more depth and understand the viability of a possible solution to this new pricing strategy. This document proposes some initial hypotheses to be validated, 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.

❔ Hypothesis

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

1. Revenue Growth

   • Modifiers can have a positive impact on revenue

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

   • Additional delivery costs will not impact current revenue streams.

2. Reach

   • All restaurants from the Iberia region will benefit from this new pricing model

3. Fees modifiers setup

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

   • The market 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.

   • Any changes done to modifiers must be reflected immediately in the Guest App.

   • Modifiers examples: Bad Weather, Reduced Restaurant Capacity, High Demand Period, Reduced Delivery Capacity, Guest Loyalty Tier, Payment Method, and Seasonal Period.

4. Fee Modifiers Management

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

   • Must allow modifiers to be 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.

   • 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.

5. Delivery Fee Transparency

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

   • 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.

6. Analytics Tracking of Fee Modifiers on Orders

   • 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.

7. Audit Trail for Fee Modifiers changes

   • Must have a log of modifier changes for auditing purposes.

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

   • Changes include:

     • Modifier created

     • Modifier removed

     • Modifier value configuration updated

     • Modifier activated or deactivated for a given restaurant (manual or automatic changes).

8. Show Fee Modifiers on the Support Tool

   • Support Operators need all detailed information on Guests Orders

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

📈 Success Metrics