Day 8 - Guesstimate Question 2
Practice guesstimate questions with us...
Hello learners!
Welcome to the 8th day of the series 30 Days of PM Interview by Crework! Yesterday, we discussed the first exercise question for guesstimate interviews. Today, we will practice one more.
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Guess the numbers 💯
Your practice question for today is:
Estimate the number of Zomato food delivery partners in Bengaluru, India.
Now, before we move on to “how should we approach it” part, I want you to try it. Come on, pause here for a while, bring a notebook and pen and try this question.
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Okay, now let’s talk about how we can approach this.
Step 1: Ask Clarifying Questions
Are we considering the total number of delivery partners on Zomato or only the active ones who deliver in a day?
How many orders delivered makes a delivery partner qualified as active?
Are we also counting the delivery partners for Blinkit?
For this estimate, I will be calculating the number of Zomato delivery partners who deliver at least one order in a day successfully.
Step 2: Coming up with an equation
So, I am gonna take this approach
Total number of food delivery partners = Total orders per day / Number of orders delivered per delivery partner
First, we will calculate the total number of orders
Bangalore’s population = 14 Million or 1.4 Crore
Ordering food is not always done on a personal level, but on a household level. Because Bangalore has a lot of young people coming in from other states, they generally live in sharing, that can also be counted as household. Assuming every household has on average 4 people.
Number of households = 1.4 Crore/ 4 = 35 Lakh households.
Not all of these households will have internet access, so considering Bangalore has 70% of the population with internet access
Household with internet access = 35 Lakh * 0.7 = 24.5 Lakh
Not all of these households will be users of Zomato. Considering only 50% of these households use Zomato.
Household with Zomato account = 0.5 * 24.5 Lakh = 12.25 Lakh, take 12 Lakh for better calculations
Now, based on their frequency of usage, we can divide the userbase into 3 types:
Power users - once a day daily = 40%
Average user - once in 2 days = 40%
People who don’t order = 20%
So, orders from power users = 0.4 * 12 Lakh * 1 order = 4.8 Lakh orders
Orders from average users = 0.4 * 12 Lakh * 0.5 orders = 2.4 Lakh orders
Total orders per day = 4.8+2.4 Lakh = 7.2 Lakh orders per day
Now, coming to number of orders per delivery partner
Assuming every delivery partner works for 12 hours a day and each order on average takes 30 minutes to deliver (including rest and wait times)
Number of orders delivered per delivery partner = 12 * 60 Minutes/ 30 minutes = 24 orders per day
Number of orders delivered per delivery partner = 24 orders per day per delivery partner
So, that gives us both the components of the equation
Total number of food delivery partners = 7.2 Lakh orders per day / 24 orders per day per delivery person
Total number of food delivery partners = 30,000
This was an example of how you can approach a guesstimate question asked in a PM interview. There can be multiple ways of approaching the same problem, and there is no “right” answer. The interviewer wants to assess your ability to think and come up with a solution. The real answer is the process you use to come up with your solution.
I would love to see the solution you came up with. Please share it with us on twitter or reply to this mail.
Day 8 - Completed ✅
Congratulations on completing the 8th lesson of the series 30 Day of PM Interview. 🥳
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