Should Amazon Deliver Food? — Product Manager Mock Interview (\with Google PM)

Summary

In this product management mock interview, the discussion revolves around whether Amazon should enter the food delivery business. The interviewee explores Amazon's strengths, including its vast logistics network and customer base, and weighs the benefits of building a new service versus acquiring an existing one. Considering regulatory challenges and market saturation, the recommendation leans towards building Amazon's own food delivery platform to leverage its existing infrastructure and potentially boost Prime membership. The conversation also contrasts Amazon's fast-paced, single-threaded approach with Google's more consensus-driven decision-making process.

Takeaways

• 🤔 Amazon is considering entering the food delivery business, with a focus on the US market due to regulatory challenges.
• 🚚 Amazon's strength lies in its established logistics and last-mile delivery network, which could be advantageous for food delivery services.
• 🏗️ The food delivery market is crowded with competitors like UberEats, DoorDash, and GrubHub, suggesting a need for a unique approach or value proposition from Amazon.
• 🛒 Amazon's customer base is accustomed to online ordering, which could translate well to food delivery services.
• 📊 The food delivery business operates on low margins, which aligns with Amazon's experience in e-commerce, where many categories also operate on slim margins.
• 🔍 Potential risks include regulatory scrutiny due to Amazon's dominance in e-commerce and the potential for low or negative margins in food delivery.
• 🛍️ Amazon could leverage its Prime membership to incentivize food delivery service use, potentially increasing Prime subscriptions and overall customer spending.
• 📝 Amazon's culture emphasizes document writing and single-threaded ownership of projects, which could influence the approach to developing a food delivery service.
• 📈 The recommendation is to build Amazon's own food delivery service, leveraging existing infrastructure and customer base, rather than acquiring a competitor.
• 🏢 The decision-making process at Amazon involves a detailed analysis of market opportunities, company strengths, and potential risks, with a focus on strategic growth and customer acquisition.
• 🔑 Key to Amazon's approach is the potential for strategic expansion into underserved areas and the use of Amazon Business to attract restaurants to the new delivery network.

Q & A

What is the main topic of the product management mock interview?

The main topic is whether Amazon should get into the food delivery business.

What is the initial question posed to the interviewee in the mock interview?

The initial question is whether Amazon should enter the food delivery business, with a focus on either a global or domestic perspective.

Why does the interviewer ask about the focus being global or domestic?

The interviewer asks about the focus to consider the different regulatory challenges Amazon might face in each scenario.

What is the MVP strategy for Amazon's entry into the food delivery business according to the interview?

The MVP strategy is for Amazon to focus within the US due to its familiarity with the logistics and delivery network.

What role does the interviewee assume in the mock interview?

The interviewee assumes the role of a Product Manager at Amazon, presenting to the VP of e-commerce.

What are some of the strengths of Amazon that could support its entry into the food delivery business?

Amazon's strengths include its status as an e-commerce giant, its extensive fulfillment and last-mile delivery network, and its customer base trained in online ordering.

What are some of the potential challenges Amazon might face in the food delivery business?

Challenges include regulatory scrutiny, competition from established players like UberEats, DoorDash, and GrubHub, and the low-margin nature of the business.

What is the 'customer first' philosophy that Amazon is known for, and how might it apply to food delivery?

The 'customer first' philosophy means prioritizing customer needs and experiences. In food delivery, this could translate to efficient ordering, fast delivery, and high-quality service.

What is the 'two-pizza team' model mentioned in the interview, and how does it facilitate Amazon's operations?

The 'two-pizza team' model refers to keeping teams small enough to be fed by two pizzas, promoting agility and swift decision-making with single-threaded owners for projects.

What are the differences in work culture between Amazon and Google as discussed in the interview?

Amazon is described as moving faster with a focus on writing and document-driven processes, while Google is characterized by a more consensus-driven approach with less emphasis on documentation.

What is the recommendation for Amazon's entry into the food delivery business based on the mock interview?

The recommendation is for Amazon to build its own food delivery service, leveraging its existing delivery network and using it as a strategy to drive Prime memberships.

What is the potential risk of entering a low-margin business like food delivery for Amazon?

The risk is that if the food delivery business does not attract new Prime members or if it cannibalizes existing Prime members without increasing overall sales, it could be a financial burden on Amazon.

How does the interviewee suggest mitigating the risk of restaurant pushback for adding another ordering system?

By strategically targeting areas underserved by food delivery services and offering incentives to restaurants, such as integration with Amazon Business for bulk orders.

What is the potential regulatory risk if Amazon decides to acquire a food delivery company?

The risk is increased scrutiny and potential antitrust issues, especially if Amazon acquires a major player in the market, disrupting healthy competition.

What is the role of Amazon Business in attracting restaurants to Amazon's food delivery network?

Amazon Business, the B2B platform, can offer bulk ordering services to restaurants, providing an incentive for them to join Amazon's food delivery network.