Strategy question
Suppose Uber decides to launch UberEats in a few new cities. How do you choose which cities to launch?
- Uber
- Strategy
- Hard
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What this question tests
Tests market-entry prioritization, turning many candidate cities into a ranked launch list using data and strategic fit.
How to approach it
- Frame it as a ranking problem: budget and ops capacity limit how many cities can launch this quarter.
- Build scoring criteria: existing Uber Rides density, restaurant supply, competitor presence from DoorDash and Grubhub, and population or income density.
- Weight the criteria by goal: fastest payback versus defending share from a competitor's expansion.
- Sequence the launch: pilot in the 2-3 highest-scoring cities, measure order volume and driver utilization, then scale the playbook.
- Define success as orders per week per city by month 3, driver utilization rate, and CAC payback period.
What a strong answer includes
- Uses Uber's existing rides data as an unfair advantage for predicting Eats demand and supply in a new city.
- Gives a concrete scoring rubric with weights instead of a vague list of factors to consider.
- Calls out the cannibalization risk of driver hours shifting between Rides and Eats.
Common mistakes
- Picking cities on population size alone, ignoring restaurant supply or how entrenched a competitor already is.
- Launching everywhere at once instead of sequencing a pilot before scaling.
Likely follow-up questions
- How would you use existing Uber Rides data to predict Eats demand in a new city?
- How do you decide when to exit a city that underperforms?
More strategy questions
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- Define a strategy of loyalty program for Google Pay.Google · Strategy · Hard
- How can you increase the basket value for Uber Eats orders?Uber · Strategy · Medium
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- How would you acquire more users for Uber?Lyft · Strategy · Easy
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