Strategy question
Only 1 in 5 drivers gets tipped. How would you help drivers get more tips on Uber?
- Uber
- Strategy
- Hard
Practice this question out loud. An AI interviewer asks it, follows up like a real interviewer would, and scores your answer. Type or speak.
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What this question tests
Two sided marketplace thinking: designing an incentive or product change that benefits drivers without alienating riders.
How to approach it
- Clarify the goal: increase the share of drivers who get tipped, currently about 1 in 5, not necessarily the average tip size.
- Identify why riders don't tip: friction in the post ride flow, no reminder, or uncertainty about tipping norms for rideshare.
- Segment riders: those who would tip if prompted well versus those who never intend to tip regardless of friction.
- Prioritize reducing friction and normalizing tipping for the first segment, since that's the more winnable group.
- Propose a post ride prompt with suggested tip amounts and a brief note on how tips reach the driver, plus letting riders pre set a default tip habit.
- Define success as percentage of rides tipped, targeting a lift from around 20 percent toward a stated goal like 35 percent.
What a strong answer includes
- Targets the stated metric precisely, share of drivers tipped, not just average tip amount.
- Segments riders realistically instead of assuming a single prompt will convert everyone.
- Gives an illustrative number, for example assuming the prompt lifts tip rate from 20 percent to 30 percent.
- Considers driver trust: making sure the tip reaches the driver quickly and transparently to reinforce the behavior.
Common mistakes
- Conflating average tip size with the percentage of rides tipped, which is the actual question.
- Proposing to guilt or pressure riders into tipping, which risks rider satisfaction and app uninstalls.
Likely follow-up questions
- How would you avoid tipping prompts feeling pushy to riders?
- How would you measure whether this actually improves driver earnings, not just tip rate?
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More questions from Uber
Learn the skill behind it
Chapters of the AI PM course that teach what this question tests.
- Chapter 4: Discovery and strategy for AI products
- Chapter 9: Prove it paid off: outcomes, economics, and pricing
- Chapter 14: Get the job: the AI PM interview loop