Metrics question
You have to launch an Uber Rider pass in your city. What should be the price of the pass?
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What this question tests
Pricing strategy grounded in unit economics, checking whether you can size the discount against ride frequency and rider willingness to pay.
How to approach it
- Clarify the pass structure: is it a monthly unlimited-rides pass, a ride-credit bundle, or a discount-percentage pass, since pricing differs by type.
- Segment target users: frequent commuters taking 20 plus rides a month get the most value, so anchor pricing to that segment.
- Estimate average per-ride cost in the city, say 8 dollars, and current monthly spend for a frequent rider, roughly 160 dollars for 20 rides.
- Price the pass to offer a visible discount, for example 120 dollars for 20 rides, a 25 percent discount, enough to feel valuable without eroding margin too much.
- Model the trade-off: lower per-ride revenue against higher ride frequency and reduced churn to competitors like Lyft.
- Test with a pilot in one city, tracking rides per pass holder versus a control group, before a full launch.
What a strong answer includes
- Anchors the price to actual per-ride spend data, not a guess, making the number defensible.
- States the trade-off explicitly: a discount that is too small won't drive adoption, one too large erodes margin, and picks a number, 20 to 30 percent off, that balances both.
- Proposes a pilot with a clear control group instead of committing to a citywide launch immediately.
Common mistakes
- Picking a price with no reference to actual per-ride economics, making the number arbitrary.
- Ignoring the risk that a pass mostly attracts riders who would have ridden anyway, inflating apparent success.
Likely follow-up questions
- How would you detect if the pass is mostly used by riders who were already frequent, not net-new demand?
- How would pricing differ between a high-demand city and a low-demand one?
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Learn the skill behind it
Chapters of the AI PM course that teach what this question tests.
- Chapter 9: Prove it paid off: outcomes, economics, and pricing
- Chapter 2: Data fluency: SQL, logs, and reading the truth yourself
- Chapter 14: Get the job: the AI PM interview loop