Introduction
To address the challenge of reducing cancellations for Uber, we need to take a comprehensive approach that considers various aspects of the user experience, market dynamics, and operational efficiency. I'll outline a strategic plan to tackle this issue, focusing on key user segments, pain points, and innovative solutions.
Step 1
Clarifying Questions (5 mins)
Why it matters: Helps identify if this is an industry-wide issue or specific to Uber, guiding our approach. Expected answer: Uber's cancellation rates are slightly higher than the industry average, particularly in urban areas during peak hours. Impact on approach: Would focus on urban-specific solutions and peak hour strategies.
Why it matters: Pinpoints critical moments in the user experience where interventions could be most effective. Expected answer: A significant portion of cancellations occur within 2-3 minutes of booking or when the driver is 1-2 minutes away from pickup. Impact on approach: Would prioritize solutions targeting these specific time windows.
Why it matters: Determines whether we need to focus more on rider retention, driver reliability, or both. Expected answer: 60% of cancellations are initiated by riders, 40% by drivers, with higher driver cancellations during off-peak hours. Impact on approach: Would develop targeted strategies for both riders and drivers, with a slight emphasis on rider retention.
Tip
At this point, you can ask interviewer to take a 1-minute break to organize your thoughts before diving into the next step.
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