Metrics question
If a large number of drivers are dropping out of a particular city, why would it be?
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What this question tests
Root cause diagnosis for driver side supply churn using segmented hypothesis testing.
How to approach it
- Confirm the scope, verify the drop is real and specific to this city, not a broader trend or a data or tracking issue.
- Hypothesize earnings related causes, lower fares, increased competition from another company, or higher local gas or vehicle costs eating into take home pay.
- Hypothesize experience related causes, poor rider behavior, unsafe pickup zones, or app issues specific to that city's conditions like poor GPS in dense areas.
- Hypothesize external causes, a local regulatory change or a seasonal event ending that temporarily drew in extra drivers.
- Investigate using driver exit surveys and comparing earnings per hour in this city against similar cities to narrow down the real cause.
What a strong answer includes
- Structures hypotheses into clear categories, earnings, experience, and external or regulatory, rather than guessing a single cause.
- Proposes a specific comparative check, earnings per hour in this city versus similar sized cities, to see if pay is genuinely the outlier factor.
- Proposes driver exit surveys as the direct way to validate the real reason rather than only inferring from aggregate data.
Common mistakes
- Naming only one hypothesis instead of considering earnings, experience, and external factors separately.
- Not comparing against similar cities to confirm this is a real local anomaly, not a broader trend.
- No plan to directly ask departing drivers why they left.
Likely follow-up questions
- What would you do if the exit survey pointed to competitor pay being higher?
- How would you design a retention offer without overspending on drivers who would have stayed anyway?
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- There is a data point that indicates that there are more Uber drop-offs at the airport than pick-ups from the airport. Why is this the case and what would you do within the product to change that?PayPal · Metrics · Hard
- How would you measure the success of Uber Ride?Lyft · Metrics · Easy
- Drivers are dropping out of a city on Lyft. How do you figure out what's going on?PayPal · Metrics · Medium
- If you were the PM for Lyft, what dashboard would you build to track the health of the app?Google · Metrics · Hard
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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