Strategy question

Launch Uber in a new city.

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

Tests go-to-market strategy for a two-sided marketplace launch, balancing which side (riders or drivers) to seed first.

Clarify the target city's profile: population density, existing public transit and taxi alternatives, and regulatory environment, since these shape the launch plan.
Solve the cold-start problem: seed driver supply first with guaranteed minimum earnings for early weeks, since riders won't return if wait times are long.
Drive initial rider demand with targeted promotions (referral credits, first-ride discounts) concentrated in early-adopter neighborhoods to build density before expanding citywide.
Address regulatory and local competitive factors: secure necessary permits and understand local taxi/ride-share incumbents' pricing to position competitively.
Define success: rides completed per active driver per week (marketplace liquidity) and driver retention past the guarantee period, not just total ride count.

Explicitly solves the cold-start problem by seeding supply (drivers) before demand, the standard and correct sequencing for a ride marketplace launch.
Proposes geographic density-first expansion within the city rather than a diffuse citywide launch, which improves early liquidity.
Uses an illustrative number, e.g. assume a driver needs at least 2 ride requests per hour to stay engaged, and sizes the guarantee program around hitting that.
Picks marketplace liquidity (rides per driver) as the success metric over vanity metrics like total sign-ups.

Launching broad demand marketing before securing enough driver supply, leading to bad early rider experiences and churn.
Ignoring local regulatory and competitive context, which varies significantly city to city.

How would you decide when to pull back the driver earnings guarantee?
How would you adapt this launch plan for a city with strong existing taxi unions or regulation?