Strategy question
What would be the strategy to increase Uber's revenue in the taxi in the ride hailing business?
Practice this question out loud. An AI interviewer asks it, follows up like a real interviewer would, and scores your answer. Type or speak.
Start a mock interview on this question · Mock interview from a job description
What this question tests
Growth strategy for a mature, competitive market, weighing pricing, supply, and new revenue stream levers.
How to approach it
- Clarify scope: revenue growth within the core ride-hailing business specifically, versus Uber's broader portfolio like Eats or freight.
- Assess the competitive market: Uber competes directly with Lyft and local taxi services on price and driver availability in most markets.
- Identify levers: increasing take rate carefully (balancing driver supply retention), improving driver utilization to reduce wait times and surge frequency, and growing premium tiers like Uber Black or Reserve for higher margin trips.
- Weigh options: aggressive take rate increases risk driver churn to Lyft, while premium tier growth captures higher willingness-to-pay riders without alienating price-sensitive core users.
- Recommend prioritizing premium tier expansion and driver utilization improvements first, since they grow revenue without directly squeezing driver economics.
- Flag risk: any pricing change must be tested carefully given regulatory scrutiny on gig worker pay in several markets.
What a strong answer includes
- Distinguishes revenue growth levers by who bears the cost, riders, drivers, or neither, since driver churn is a real, well documented risk.
- Prioritizes premium tier growth and utilization, which are less zero-sum than a blunt take rate increase.
- Flags regulatory risk around driver pay explicitly, reflecting real, ongoing scrutiny Uber has faced in multiple markets.
Common mistakes
- Proposing a simple take rate increase without acknowledging driver churn and regulatory risk.
- Ignoring the competitive dynamic with Lyft, which limits how much pricing power Uber actually has.
Likely follow-up questions
- How would you measure the tradeoff between take rate increases and driver churn?
- How would regulatory scrutiny on driver pay affect this strategy?
More strategy questions
- Should Uber Eats be a different app from Uber Rides?Lyft · Strategy · Hard
- Lyft wants to enter the Indian market. What should be the strategy?Lyft · Strategy · Hard
- You own 6 pizza shops in the city and want to improve revenue. Do you develop a mobile app or use Uber Eats?Lyft · Strategy · Hard
- How would you acquire more users for Uber?Lyft · Strategy · Easy
- Lyft wants to add Shared Saving rides. What factors will you consider to determine riders' willingness to pay? What experiments will you run to test your assumptions?Lyft · Strategy · Hard
- Launch Uber in a new city.Swiggy · Strategy · Medium
More questions from these companies
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