Interview Questions › Metrics

Pick a North Star metric for Zomato food delivery

You are the head of product for Zomato food delivery. Pick one North Star metric for the business and defend it.

Context

Three sides: customers, restaurants and delivery partners. The company is profitable on delivery and wants durable growth.

Clarifying questions to ask first

• Growth stage or efficiency stage?
• Is this for the whole marketplace or one side?

How to approach it

1. Explain what a North Star must capture (value to customers that leads to revenue)
2. Compare options: GOV, orders, monthly transacting users, on-time delivered orders
3. Explain how it moves with supply-side health
4. Add counter-metrics

Framework: Goal of the product -> Users and value exchange -> North Star -> Supporting metrics by funnel stage -> Guardrails and counter-metrics -> Decision or target

Sample answer

• Weekly orders delivered on time and as ordered
• Monthly transacting users (frequency proxy)
• Gross order value (revenue proxy, vulnerable to discounts)

1. GOV grew 25% last year but 40% of that came from discount-heavy cities
2. Late or wrong orders cut 30-day repeat rate from 62% to 41%
3. Restaurant churn is highest where partner wait time exceeds 12 minutes

North Star: weekly orders delivered on time and correct, because it captures customer value, supply health and repeat behaviour together. Counter-metrics: contribution margin per order, restaurant partner churn and delivery partner earnings per hour.

What interviewers look for

• Weekly orders delivered on time
• Monthly transacting users
• Contribution margin per order