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Pricing
Product Management Root Cause Analysis Question: Addressing increased ride cancellations for Uber

Asked at Uber

15 mins

As an Uber Product Manager, how would you address an increase in ride cancellation rates?

Data Analysis Problem Solving Strategic Thinking Transportation Technology Gig Economy
Data Analysis Root Cause Analysis User Behavior Ride-Sharing Pricing Strategy

Introduction

Addressing an increase in ride cancellation rates at Uber is a critical challenge that directly impacts user experience, driver satisfaction, and overall platform efficiency. I'll approach this issue systematically, focusing on identifying root causes, validating hypotheses, and developing both short-term fixes and long-term strategies to mitigate cancellations.

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 this might be a recent trend. Has there been a significant spike in cancellations over the past few weeks or months?

Why it matters: Helps determine if this is a sudden issue or a gradual trend. Expected answer: A recent spike in the last month. Impact on approach: A sudden spike would suggest looking for recent changes or events.

  • Considering user segments, I'm wondering if this is affecting all rider types equally. Are we seeing higher cancellation rates among certain user groups (e.g., new users, frequent riders, or specific geographic areas)?

Why it matters: Identifies if the issue is widespread or localized to specific segments. Expected answer: Higher rates among new users in urban areas. Impact on approach: Would focus on onboarding experience and urban-specific factors.

  • Thinking about the cancellation process, I'm curious about the timing. At what point in the ride request flow are most cancellations occurring?

Why it matters: Pinpoints where in the user journey the problem is most acute. Expected answer: Most cancellations occur after driver assignment but before pickup. Impact on approach: Would investigate factors affecting the period between assignment and pickup.

  • Considering recent changes, have there been any significant updates to the app, pricing model, or driver incentives in the past few months?

Why it matters: Identifies potential internal causes for the increase in cancellations. Expected answer: Recent changes to the surge pricing algorithm. Impact on approach: Would examine how pricing changes might be affecting user behavior.

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