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

  1. Split cancellations by who initiates them, rider versus driver, since peak-hour causes and fixes differ substantially between the two.
  2. Hypothesize rider-side causes: long ETAs from driver shortage during peak demand, or riders price-shopping and cancelling after seeing surge pricing.
  3. Hypothesize driver-side causes: drivers cancelling low-fare or short trips in favor of waiting for a higher-value ride during high-demand periods.
  4. Segment the data by city, time window and cancellation-initiator to confirm this is genuinely concentrated at peak hours and not evenly spread.
  5. 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.

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