Metrics question

As a PM of Uber, how would you solve the problem of sudden increase in demand of cabs when an event is over?

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What this question tests

Tests operational problem-solving for a predictable but sharp supply-demand mismatch, balancing pricing tools with proactive supply planning.

How to approach it

  1. Clarify this is a forecastable spike, since event end times are known in advance, unlike random demand surges.
  2. Use historical data from similar past events to predict the expected demand spike's size, location and timing.
  3. Proactively pre-position drivers near the venue before the event ends, using incentives to guarantee driver presence at the predicted spike time.
  4. Apply dynamic pricing as a secondary lever, balancing rider fairness concerns against the real need to pull in more driver supply quickly.
  5. Define success as average wait time immediately after the event and rider complaint rate about pricing or availability.

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