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Product Management Root Cause Analysis Question: Investigating DiDi's ride-hailing service user decline

Asked at DiDi

15 mins

Why has the average daily active user count for DiDi's ride-hailing service dropped by 15% in the past month?

Data Analysis Problem-Solving Strategic Thinking Transportation Technology Sharing Economy
User Retention Root Cause Analysis Competitive Analysis Pricing Strategy Ride-Hailing

Introduction

The recent 15% drop in DiDi's ride-hailing service daily active users (DAU) over the past month is a critical issue that demands immediate attention. This analysis will systematically identify, validate, and address the root cause while considering both short-term and long-term implications for the product and business.

I'll approach this problem by first clarifying key details, ruling out external factors, and then diving deep into product understanding, metric breakdown, and data analysis. From there, I'll form hypotheses, conduct root cause analysis, and propose validation methods and solutions.

Framework overview

This analysis follows a structured approach covering issue identification, hypothesis generation, validation, and solution development.

Step 1

Clarifying Questions (3 minutes)

  • Looking at the timing, I'm thinking there might be seasonal factors at play. Has this 15% drop been compared to the same period last year?

Why it matters: Seasonal trends could explain the drop and influence our solution approach. Expected answer: Yes, this drop is unusual compared to last year's data. Impact on approach: If seasonal, we'd focus on year-over-year comparisons and seasonal strategies.

  • Considering user segments, I'm curious about the distribution of the drop. Is the 15% decrease uniform across user types (e.g., frequent vs. occasional riders)?

Why it matters: Uneven impact could point to specific user experience issues or changes affecting certain groups. Expected answer: The drop is more pronounced among occasional riders. Impact on approach: We'd investigate factors specifically affecting occasional riders' engagement.

  • Thinking about recent changes, have there been any significant product updates or policy changes in the last 1-2 months?

Why it matters: Recent changes could directly correlate with the DAU drop. Expected answer: A new pricing algorithm was implemented 6 weeks ago. Impact on approach: We'd focus on analyzing the impact of this pricing change on user behavior.

  • Considering competitive landscape, has there been any notable change in competitor activity or market dynamics recently?

Why it matters: External competitive factors could be drawing users away from DiDi. Expected answer: A new ride-sharing service launched in some key markets last month. Impact on approach: We'd analyze market share data and compare features with the new competitor.

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