Estimation question

How would you price a Tier 1 and Tier 2 Uber subscription?

Practice this question out loud. An AI interviewer asks it, follows up like a real interviewer would, and scores your answer. Type or speak.

What this question tests

Whether you can design a tiered pricing structure grounded in customer segments and their actual usage patterns.

Clarify scope: pricing Uber's ride subscription in two tiers, likely differing by discount depth, ride credits, or perks.
Segment riders by usage: light riders taking a few trips a month versus heavy riders like daily commuters.
Estimate the value heavy riders get from per-ride discounts to anchor the higher tier's price around their expected savings.
Propose Tier 1 as a lower-cost tier with modest discounts for occasional riders, and Tier 2 as a higher-cost tier with deeper discounts and perks like priority pickup for heavy riders.
State illustrative numbers, such as Tier 1 at roughly 10 dollars a month for a 5 percent discount, Tier 2 at 25 dollars for 15 percent off plus perks.
Define success metrics: subscription conversion rate per tier and a guardrail on cannibalizing normal ride revenue.

Anchors pricing to rider value, the savings a heavy rider would actually realize, rather than picking arbitrary numbers.
Differentiates the tiers by usage pattern, not just an arbitrary price gap, so each tier fits a real segment.
States illustrative price points clearly labeled as assumptions, not presented as researched facts.
Names a cannibalization guardrail, since a subscription can reduce revenue from riders who would have paid full price anyway.

Picking prices with no connection to what riders would actually save or value.
Ignoring the risk that a subscription cannibalizes revenue from riders who already ride and pay full price.

How would you decide the break-even ride frequency where a subscription pays off for a rider?
What would you do if Tier 2 subscribers turned out to ride less than expected?