How would you improve Uber? – PM Interview Question

G → Goal / Clarify

Clarifying Questions & Assumptions:

1. Which core business are we improving — Mobility (ride-hailing), Delivery (Uber Eats), Freight, or others?
   → Assumption: Uber Mobility (ride-hailing), since Uber Eats was sold to Zomato in India and Mobility is the flagship service here.
2. What is the business objective for improvement?
   → Assumption: Increase rider engagement by driving a 10% increase in rides per active rider within 1 year, while maintaining customer satisfaction.
3. What geography should we focus on?
   → Assumption: India, specifically Tier-1 cities (Bangalore, Delhi, Mumbai) where Uber has its largest user base and highest competitive pressure.
4. Which side of the marketplace are we prioritizing — riders or drivers?
   → Assumption: Rider-side improvements (increasing frequency & retention), while ensuring driver utilization and earnings are not negatively impacted.

Product Mission

Uber’s mission in Mobility is to make everyday transportation accessible, reliable, and affordable across India, while providing sustainable livelihood opportunities for drivers.

Metrics to Measure Improvement:

• Primary Metric (Success):
  • Rides per Active Rider (monthly average, India)
  • Clear measure of engagement and frequency.
• Guardrail Metrics:
  • Rider NPS (customer satisfaction, safety, experience).
  • Driver Utilization Rate (time spent with a passenger / total available time).
  • Cancellation Rate (indicator of demand-supply or pricing mismatches).

Refined Problem Statement

Improve Uber’s ride-hailing experience in Tier-1 Indian cities to increase rides per active rider by 10% in 1 year, while maintaining high rider satisfaction (NPS) and ensuring healthy driver utilization and earnings.

A → Audience

User Segments for Uber Riders (India)

1. Daily Commuters

• Use Uber regularly for office or college travel (2–10 rides/week).
• Price-sensitive, compare with Ola, autos, and metro.
• Expect reliability (on-time pickup, minimal cancellations).

2. Occasional Riders

• Use Uber for social outings, shopping, or weekends (2–4 rides/month).
• Value comfort, convenience, and availability.
• More likely to drop off if fares surge or availability drops.

3. Premium Users (High-Value Customers)

• Regularly use Uber Premier, Intercity, or rentals.
• Prioritize safety, comfort, and seamless experience over cost.
• Expect personalization and consistently high service quality.

Focus Segment: Daily Commuters

Why focus on Daily Commuters:

• Frequency = Engagement: They have the highest potential to increase rides per user, directly impacting our core metric.
• Competitive Retention Risk: They are most vulnerable to switching to Ola, Rapido, or autos if pricing or reliability fails.
• Network Effects: Improving experience for daily commuters improves demand consistency, stabilizing driver utilization too.
• Predictable Use Cases: Clear routines (home ↔ office) make it easier to design personalized or habit-forming improvements.

U → Understand Pain Points (Daily Commuters)

High Price Volatility:
Frequent surge pricing during peak hours discourages daily usage.

Unreliable Availability:
Driver cancellations and long ETAs during rush hours make the service unpredictable.

Lack of Subscription or Loyalty Value:
No strong reward system for frequent riders; users often compare daily fares with competitors.

Inconsistent Ride Experience:
Driver professionalism, air-conditioning, and car cleanliness vary widely, reducing trust in daily dependability.

First/Last Mile Gaps:
Difficulty finding rides to/from metro stations or tech parks leads users to prefer autos or two-wheelers.

App Experience Fatigue:
Price confusion (fare before/after surge, multiple car types) makes daily booking cognitively tiring.

S → Solutions / Options (Daily Commuters)

1️⃣ Uber Commute Pass (Subscription Model)

Description:
Launch a weekly or monthly “Commute Pass” offering discounted flat fares for frequently traveled routes (e.g., home ↔ office).

Example:
“₹1,499 for 20 rides/month within 10 km – guaranteed fixed fares and priority matching during peak hours.”

How It Helps:

• Reduces price anxiety from surge pricing, making daily rides predictable.
• Builds habitual usage among office commuters, increasing frequency.
• Provides Uber with a steady, predictable revenue stream from repeat users.

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2️⃣ Uber Auto / Moto Integration for First-Mile & Last-Mile Connectivity

Description:
Integrate Uber Auto and Uber Moto options seamlessly into the main Uber app’s commute planning — showing combined trip routes such as Uber Moto + Metro + Uber Auto.

How It Helps:

• Solves first- and last-mile connectivity for metro and suburban commuters.
• Expands Uber’s reach into short-distance, high-frequency trips.
• Increases affordability and accessibility during peak congestion hours.
• Keeps Uber relevant even when users aren’t booking cabs for full journeys.

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3️⃣ Commute Rewards Program (Loyalty Layer)

Description:
Introduce a gamified loyalty program rewarding frequent riders with points, cashbacks, or free rides for consistent monthly trips.

How It Helps:

• Increases rider retention through recognition and tangible rewards.
• Encourages users to stay within the Uber ecosystem rather than switch to competitors like Ola or Rapido.
• Boosts lifetime value (LTV) by rewarding frequency and reliability.

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4️⃣ Ride Assurance (Reliability Guarantee)

Description:
Offer a “Ride Assurance” feature — guaranteed ride confirmation within X minutes for subscribed or pass users, with partial refund/credit if Uber fails to deliver.

How It Helps:

• Builds trust and reliability — critical for daily commuters who depend on Uber for punctuality.
• Positions Uber as a dependable, premium service in India’s fragmented market.
• Reduces anxiety caused by high cancellation rates or lack of available drivers during peak hours.

Prioritization & Rationale

Priority	Solution	Why
1️⃣	Uber Commute Pass	Tackles the biggest commuter pain point — unpredictable surge pricing. Drives consistent usage and retention among daily riders.
2️⃣	Uber Auto / Moto Integration	Addresses the first and last-mile gap for millions of metro and suburban commuters, enabling Uber to capture shorter, high-frequency rides that are currently underserved or taken by local autos/rapido. This increases total trip volume and daily active users.
3️⃣	Ride Assurance	Reinforces reliability — a key trust differentiator that increases confidence in using Uber for essential commutes.

S → Success Metrics & Trade-offs

Primary Metric (Success)

Rides per Active Rider (monthly average, India)

• Why: Directly measures engagement frequency and habit formation — the goal is to make Uber the go-to choice for daily commutes.
• Expected Outcome: +10–15% improvement within 12 months, reflecting increased loyalty and consistent usage.

Guardrail Metrics

Metric	What It Measures	Why It Matters
Rider NPS	Overall satisfaction across price, reliability, and experience.	Ensures that higher engagement doesn’t come at the cost of trust or satisfaction.
Driver Utilization Rate	% of time drivers spend with a passenger vs. waiting.	Protects driver earnings and ecosystem balance — a critical lever for long-term sustainability.
Cancellation Rate	% of rides canceled by riders or drivers.	Acts as an early signal for demand-supply mismatch or poor experience due to long ETAs or surge pricing.

Trade-offs

Type of Trade-off	Explanation	Example
Pricing Risk	Subscription-based discounts or passes may reduce per-ride revenue in the short term.	The ₹1,499 Commute Pass lowers average fare per ride but can increase total rides and retention.
Driver Incentive Misalignment	Prioritizing subscription users (e.g., fixed pricing) could reduce driver flexibility during surge hours.	Drivers might prefer surge rides unless incentives are aligned.
Operational Risk	“Ride Assurance” introduces service-level commitments that increase operational pressure.	If demand spikes and supply falls short, Uber must refund or credit users.
Opportunity Cost	Focusing on commute reliability and loyalty programs may delay innovations in other verticals.	Slower experimentation in categories like Uber Rentals or Intercity.

Summary / Recap

The goal is to increase ride frequency and loyalty among urban commuters in India, making Uber their preferred daily travel option — while maintaining strong rider satisfaction and healthy driver utilization.

The core issue today is inconsistent reliability and unpredictable pricing, which reduce trust and habit formation for daily rides.
To address this, I focused on commute-heavy power users — those who ride multiple times a week and contribute disproportionately to engagement and revenue.

To solve for their key pain points — price volatility, unreliable peak-hour rides, and lack of incentives — I propose three high-impact solutions:

1️⃣ Uber Commute Pass (Subscription Model)
→ Predictable, discounted fares for frequent routes (home ↔ office).
→ Drives repeat usage and reduces anxiety over surge pricing.

2️⃣ Uber Auto / Moto Integration for First & Last-Mile Connectivity
→ Combines short, affordable rides with metro or bus commutes.
→ Expands Uber’s share of wallet and keeps riders within the ecosystem.

3️⃣ Ride Assurance (Reliability Guarantee)
→ Commitment to guaranteed pickup times for subscribed commuters.
→ Reinforces trust and reliability — critical for daily-use behavior.

Primary Success Metric:
➡️ Rides per Active Rider (monthly average, India) — a clear indicator of engagement and frequency.

Guardrail Metrics:

• Rider NPS (experience & trust)
• Driver Utilization Rate (ecosystem health)
• Cancellation Rate (supply-demand balance)

Trade-offs:
Short-term margin impact from discounted passes, operational risk from assurance commitments, and potential driver incentive misalignment — but with strong potential for higher retention, trust, and long-term profitability.

In summary

These initiatives make Uber more predictable, reliable, and habit-forming for commuters — strengthening both user loyalty and supply-side stability. This approach aligns with Uber’s broader mission: “To help people move reliably and affordably while enabling drivers to earn sustainably.”