Metrics question
Uber is facing a challenge with the increase in cancelled rides especially during peak hours. As product manager, how would you solve this situation?
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What this question tests
Tests diagnosing a cancellation problem by separating rider-initiated from driver-initiated causes before proposing a fix.
How to approach it
- Split cancellations by who initiates them, rider versus driver, since peak-hour causes and fixes differ substantially between the two.
- Hypothesize rider-side causes: long ETAs from driver shortage during peak demand, or riders price-shopping and cancelling after seeing surge pricing.
- Hypothesize driver-side causes: drivers cancelling low-fare or short trips in favor of waiting for a higher-value ride during high-demand periods.
- Segment the data by city, time window and cancellation-initiator to confirm this is genuinely concentrated at peak hours and not evenly spread.
- Propose targeted fixes: proactive driver incentives for short or low-fare trips during peak hours, and clearer ETA transparency for riders before they commit to a request.
What a strong answer includes
- Splits cancellations by initiator first, the most useful diagnostic bucket for this exact problem.
- Names a specific, plausible driver-side behavior, cherry-picking higher-fare rides during peak demand, grounded in real driver incentive dynamics.
- Proposes fixes tailored to each cause separately, rather than one generic blanket solution.
Common mistakes
- Treating all cancellations as one bucket without splitting by rider versus driver-initiated cause.
- Proposing a fix, like a flat cancellation penalty, without first understanding why cancellations are actually happening.
Likely follow-up questions
- How would you prevent a cancellation penalty from unfairly punishing riders who cancel for legitimate reasons?
- How would you measure if your fix is working within the same peak-hour window?
More metrics questions
- Late deliveries lead to customer churn. What data we should look at to prove this hypothesis for a food delivery app?PayPal · Metrics · Medium
- How would reduce cancellations for Uber?Shopify · Metrics · Medium
- 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
- If a large number of drivers are dropping out of a particular city, why would it be?Lyft · Metrics · Medium
- Drivers are dropping out of a city on Lyft. How do you figure out what's going on?PayPal · Metrics · Medium
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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