Estimation question

What is the decrease in percentage of cab rides in post covid times compared to pre covid times?

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What this question tests

Estimation skill through structured reasoning, not the specific number, checking assumptions are stated and logic is sound.

How to approach it

  1. Restate the question precisely: percentage decline in cab or ride-hailing rides comparing a post-pandemic period to a pre-pandemic baseline.
  2. State the baseline assumption, for example pre-pandemic ride volume driven heavily by daily commuting and airport trips.
  3. Identify the key behavior shifts: reduced commuting due to remote or hybrid work, and reduced business and airport travel during the acute pandemic period.
  4. Assign illustrative percentage drops to each segment, clearly marked as assumptions, such as a large drop in commute-driven rides and a smaller drop in leisure or local rides.
  5. Weight the segments by their assumed share of total pre-pandemic ride volume to compute a blended estimate.
  6. State a final illustrative range, for example a 15 to 25 percent decline blended across segments, and note the range would narrow with real data on segment mix.

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