Product design question
You work for Uber and you need to increase your revenue. How would you proceed?
- Agoda
- Product design
- Hard
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
Strategic revenue-growth thinking for a marketplace business, requiring the candidate to identify and prioritize specific levers rather than a vague 'grow revenue' answer.
How to approach it
- Break revenue into its components: number of rides, average fare per ride, and take rate, to identify which lever offers the most realistic near-term upside.
- Evaluate demand-side levers: increasing ride frequency among existing riders via loyalty incentives, or expanding into underpenetrated markets or use cases like intercity or package delivery.
- Evaluate supply-side levers: improving driver utilization (reducing idle time) to support more rides without needing more drivers, directly improving unit economics.
- Evaluate monetization levers: dynamic pricing optimization and ancillary revenue, like in-app advertising or premium ride tiers.
- Prioritize one or two levers with the clearest near-term impact, e.g. driver-utilization improvements plus targeted loyalty incentives, and define success as revenue per active rider and driver utilization rate.
What a strong answer includes
- Decomposes revenue into concrete components before proposing levers, showing structured thinking rather than a grab-bag of ideas.
- Covers both demand and supply sides, appropriate for a two-sided marketplace like Uber.
- Prioritizes to one or two levers with a stated rationale, rather than listing every possible idea with no ranking.
Common mistakes
- Proposing only demand-side ideas (more riders) while ignoring driver-side utilization, which directly affects marketplace efficiency and cost.
- Giving an unprioritized list of five-plus ideas with no clear recommendation.
Likely follow-up questions
- Which lever would you expect to pay off fastest, and which would take longest?
- How would you avoid pricing changes that increase revenue but hurt rider retention?
More product design questions
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- Design a refrigerator for the blind.Google · Product design · Hard
- Redesign Twitter for eCommerce.Shopify · Product design · Hard
- You are a PM at Flipkart. The company has decided to increase the userbase of age >60 years on the platform. What will you do?Flipkart · Product design · Hard
- Develop a seller score algorithm for Walmart Marketplace.Walmart · Product design · Hard
More questions from Agoda
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 7: AI UX and human oversight: design for a system that is wrong sometimes
- Chapter 14: Get the job: the AI PM interview loop