Product Management Folks! Need help!

I had this question come up in a recent interview and found it really challenging since it all lacked substance and was just assumptions.

Estimation: If Zomato were to start a subscription based meal deliveries what could be the revenue potential?

Assumptions: Target city - Gurgaon, Lunches only

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Am not sure how you took the top down approach when your starting assumption is 1 L. Anyhow, it’s not really tough. Start with population of gurgaon, then define your segment (age based) and basis assumption come up with a number. Within the segment, define the target (assumption based on threshold income, unmarried working folks - assume a higher percentage, married working folks - lower percentage). Clearly call out your exclusions. Assume monthly and quarterly Subscription pricing plans, allocate the same across your target segment basis a 70:30 or 60:40 split. Arrive at a revenue number. Assume some 10-15% growth yoy

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In an ideal situation subscription for a service is run on 3-7% in total visiter.
Keep average salary, society, martial status, male/female ratio as well as food price and subscription price to calculate some number.

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Yes tried that method - noios down to nowhere . Started with an assumption of 1L people in age group 21-28 as target - so it's like a lost cause without any base.

The thing is any org would deep dive into subscription service after looking up stats in their regular orders.

Estimation case studies are primarily assumption based. You should take a top down approach rather than a bottom up one

That's what I did but failed to get anywhere.

I wish if someone could solution it.

This seems to be another guesstimate question. In such cases ask all the relevant questions before making assumptions and don't make too wide assumptions.. widest being "I assume the answer is xxx" 😜

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