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
- Clarify this is a forecastable spike, since event end times are known in advance, unlike random demand surges.
- Use historical data from similar past events to predict the expected demand spike's size, location and timing.
- Proactively pre-position drivers near the venue before the event ends, using incentives to guarantee driver presence at the predicted spike time.
- Apply dynamic pricing as a secondary lever, balancing rider fairness concerns against the real need to pull in more driver supply quickly.
- Define success as average wait time immediately after the event and rider complaint rate about pricing or availability.
What a strong answer includes
- Recognizes this spike is predictable and shifts focus to proactive pre-positioning rather than only reactive dynamic pricing.
- Uses historical event data to forecast supply needs, a concrete and specific solution.
- Explicitly weighs rider fairness concerns around surge pricing rather than treating it as a purely mechanical lever.
Common mistakes
- Relying on dynamic pricing alone without any proactive driver pre-positioning.
- Treating this like an unpredictable random spike rather than using historical event data to forecast it.
Likely follow-up questions
- How would you incentivize drivers to pre-position without guaranteed pickups?
- How would you handle rider backlash against high surge pricing after a big event?
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Learn the skill behind it
Chapters of the AI PM course that teach what this question tests.
- Chapter 9: Prove it paid off: outcomes, economics, and pricing
- Chapter 2: Data fluency: SQL, logs, and reading the truth yourself
- Chapter 14: Get the job: the AI PM interview loop