Strategy question
You are a PM at Uber. Devise strategies to improve revenue.
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
Tests structured revenue strategy for a two-sided marketplace, requiring a clear revenue-tree breakdown rather than a scattered list of ideas.
How to approach it
- Define the revenue tree: revenue equals rides times average fare times take rate, so improvements can come from any of these three levers.
- Propose the rides lever: increase ride frequency through habit-forming features like scheduled commute rides, or expand into underserved segments with a lower-cost tier.
- Propose the average fare lever: introduce premium tiers, like guaranteed ETA or an expanded Uber Black, targeting willingness-to-pay segments rather than raising base prices broadly.
- Propose the take-rate lever: expand higher-margin adjacent revenue like in-app advertising and Uber One membership, increasing basket size and frequency.
- Weigh trade-offs: raising take rate too aggressively risks driver supply attrition, so any change must be modeled against driver churn.
- Define success: revenue per ride, driver supply elasticity to any take-rate change, and Uber One subscriber retention.
What a strong answer includes
- Structures the answer around a clear revenue equation, rides times fare times take rate, rather than a scattered list of ideas.
- Proposes specific, realistic levers, scheduled rides, premium tiers, in-app advertising, grounded in what Uber has actually explored.
- Explicitly weighs the take-rate lever against driver supply risk, showing two-sided marketplace thinking.
- Names concrete success metrics tied to each lever rather than one vague increase-revenue measure.
Common mistakes
- Listing generic ideas like more marketing or more cities without tying them to a specific revenue lever.
- Ignoring the two-sided marketplace risk that aggressive monetization can hurt driver supply and indirectly hurt revenue.
Likely follow-up questions
- Which lever would you prioritize first, and why?
- How would you model the risk of driver attrition from a take-rate increase?
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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