Dunzo expansion into India's small towns: strategy, UX, user stories and metrics

Dunzo, an Indian app for on-demand delivery from local stores and pick-up-and-drop errands, wants to expand into Tier 3 and Tier 4 cities in India. You are the product manager leading this expansion. Explain how you would approach it, covering each of the parts below in detail. ### Clarifying Questions - Which towns count as Tier 3 and Tier 4 here: the small towns defined by official population bands, or the larger district towns that consumer apps usually mean by the term? - Should the launch carry Dunzo's full range of services, or may it start with a narrower set? - Is the first-year aim user growth and coverage, or a path to profitable unit economics in each new town? - Must the expansion use the existing app and rider model, or are new operating models, such as local franchise partners or part-time riders, on the table? ### Part 1 — Strategy to enter, execute and win Set out your strategy for entering these towns, executing the launch, and winning against whatever people there use today. ```hint Pick towns before features Small towns differ widely in density, spending power and how people shop today. Decide how you would choose the first towns and what has to be true there for local delivery to pay for itself. ``` #### What This Part Should Cover - Criteria and a sequence for choosing launch towns. - The operating model for supply: merchants, riders and the local team. - How Dunzo stands apart from shops that deliver to regulars by phone and from other apps. ### Part 2 — Consumer value propositions worth solving Name the consumer value propositions you would pursue and explain why each is worth solving from both a product and a business standpoint. Support them with numbers and with evidence that the underlying problem exists. ```hint Separate evidence from assumption You will not have exact market data in the room. Show which figures are estimates, how you would size the opportunity with them, and what research or app data would confirm them. ``` #### What This Part Should Cover - Specific consumer problems in small towns, tied to the segments that feel them. - A sizing or unit-economics estimate built on labeled assumptions. - Sources of evidence and how each would be validated. ### Part 3 — End-to-end consumer experience For any new or evolved value proposition that goes beyond what Dunzo offers today, recommend the user experience and walk through it end to end, from first hearing about the service to receiving an order and coming back. ```hint Design for the local context Consider the phones, connectivity, languages, addresses and payment habits typical of a small town, and find the points where a big-city flow would break for a first-time user. ``` #### What This Part Should Cover - Every step of the journey from discovery to repeat use. - Adaptations for language, low-end devices, informal addresses and payment. - Trust and failure handling, such as an unavailable item, a late rider or a cash order. ### Part 4 — User stories for engineering Write user stories for these use cases in the form you would hand to the engineering team for execution. ```hint Make them testable A story the team can build names a user, a goal and a reason, and its acceptance criteria cover the edge cases that matter in small towns. ``` #### What This Part Should Cover - Stories in a consistent format for customers and, where needed, riders and merchants. - Acceptance criteria and priorities. - Edge cases such as weak connectivity, cash payment and failed delivery. ### Part 5 — Billboard in the town center You must design a large billboard for the city center of one particular Tier 3 town. What would it call out, and why? ```hint One message, read in seconds People pass a billboard quickly. Choose the single proposition most likely to get a first-time user to try the service, and think about which language it should be written in. ``` #### What This Part Should Cover - One clear message tied to a chosen value proposition. - Local language and identity, and a low-effort way to act on the message. - How the billboard's effect would be measured. ### Part 6 — Success metrics and dashboard List the success metrics you would track daily, weekly and monthly to judge whether this value proposition is succeeding or failing, and present them as a dashboard view filled with dummy data. ```hint Match each metric to its cadence Operational health changes within hours, while retention and town-level profitability take weeks to show. Decide which numbers each review is for and what threshold would trigger action. ``` #### What This Part Should Cover - Metrics grouped by cadence, with the decision each one supports. - Demand, supply, fulfillment, retention and unit economics. - Targets or thresholds, and a dashboard mockup clearly labeled as dummy data. ### What a Strong Answer Covers - A consistent thread from town selection and chosen segments through the value propositions, UX, stories, billboard and metrics. - Realistic handling of small-town constraints: low order density, cash, language, informal addresses and trust. - Numbers presented as labeled estimates, with a plan to validate them. - Clear criteria for when to scale to more towns, change course or exit a town. ### Follow-up Questions - After three months, a town has strong downloads but most first-time customers never order again. How do you find out why? - Would you run riders as full-time staff, as part-time locals paid per order, or through a local franchise partner, and what changes in each case? - Which single metric would make you pull out of a town, and at what point?