Pricing Basketwala Plus

A product strategy question from a product manager interview, set at Basketwala, a fictional online grocery company.

The question

Skills this case tests

A starting structure

Monthly contribution per member = orders × (margin − delivery cost) + membership price, compared with the same user today

How to approach this case

Ask what the membership is for (margin, share of wallet, or keeping heavy users from a competitor) and how delivery fees work today, before naming any price. Segment users by order frequency and work out what each segment pays in fees and earns you now. That gives you two bounds: what a member feels they save, and the price below which each segment loses you money. Think hard about who signs up first, and whether the membership changes behaviour or simply discounts what people already do. Ask what happens to basket size when delivery is free. Compare several price points with numbers. A strong close recommends one price with rules attached, explains how you'd test it fairly, and judges success on a margin metric measured across all users, not just members.

The full method for strategy, pricing and growth questions

After the mock interview you get scores on five skills, what to fix with quotes from your answers, and the ideal path for this case.