Estimation question
You have a grocery delivery service (similar to Blinkit or Instamart) that ships pan India within 24 hours. Without searching online for specific details, estimate how many 1-ton trucks you need to operate this service using the power of logic based on assumptions (e.g., assuming that India has 1.4 billion people of which you have a 25% market share).
- Estimation
- Medium
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What this question tests
Multi-step estimation using explicitly given assumptions, testing whether the candidate follows and builds on provided numbers correctly.
How to approach it
- Use the given assumptions: 1.4 billion population and a 25 percent market share, giving roughly 350 million addressable people.
- Estimate the share who actually order groceries via this service regularly, assuming 10 percent are active users, about 35 million people.
- Estimate order frequency, assuming each active user orders about once a week, giving roughly 5 million orders per day.
- Estimate orders per truck per day: each 1-ton truck carries about 150 orders per run and completes about 3 runs a day, so 450 orders daily.
- Calculate: 5 million divided by 450 gives roughly 11,000 trucks needed nationally.
- Sanity check the order of magnitude and state the final estimate as a range, roughly 9,000 to 13,000 trucks.
What a strong answer includes
- Builds directly and correctly on the assumptions explicitly given in the prompt rather than inventing different ones.
- Adds the necessary missing steps, active user rate, order frequency, and truck capacity, with clearly stated assumptions.
- Shows the full calculation chain transparently rather than skipping to an answer.
- States a final range and sanity-checks it against a plausible national delivery fleet scale.
Common mistakes
- Ignoring the assumptions explicitly given in the prompt and inventing different ones.
- Skipping the truck capacity and runs-per-day step, a key part of converting orders into a truck count.
- Presenting an overly precise single number with no range.
Likely follow-up questions
- How would this estimate change during a high-demand period like a festival season?
- What would you assume differently for last-mile versus long-haul truck routes?
- How confident are you in the truck capacity and runs-per-day assumption?
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Learn the skill behind it
Chapters of the AI PM course that teach what this question tests.
- Chapter 2: Data fluency: SQL, logs, and reading the truth yourself
- Chapter 9: Prove it paid off: outcomes, economics, and pricing
- Chapter 14: Get the job: the AI PM interview loop