The discussion focused on how to effectively answer the product interview question: "What success metrics would you set for Uber (ride-hailing app)?".
Key frameworks included understanding Uber’s users and business model, prioritizing critical metrics, and emphasizing the importance of narrative and prioritization.
Success was defined for both drivers and riders, and the importance of aligning metrics to business goals was highlighted.
The recommended approach stresses thoughtful selection of North Star and supporting metrics over merely listing industry standards.
Action Items
None were specified in the transcript.
Framework for Setting Success Metrics for Uber
Begin by clarifying which Uber product is in focus (e.g., ride-hailing, Uber Eats), then identify key user types: riders and drivers.
Map the user journey for both riders and drivers, covering onboarding, ride matching, completion, and feedback, to understand event touchpoints.
Summarize Uber’s business model: Uber’s revenue comes from a portion of driver earnings, which are driven by completed rides.
Emphasize the importance of prioritizing “quality over quantity” in selecting metrics—focus on the most important indicators.
Defining and Prioritizing Success Metrics
Frame success by asking “what does success (or failure) look like?”, then derive metrics from these qualitative questions.
For Uber overall, key success questions and candidate metrics include:
Are we growing revenues? → total revenue, total profit.
Are more users using it more frequently? → number of completed rides (North Star metric).
Are incentives ROI-positive? → total earned / total spent on incentives.
Prioritize metrics: Revenue/profit and usage (completed rides) are top priorities; positive ROI is a secondary priority.
Success Metrics for Drivers
Is driver retention healthy? → number of active drivers per week, retention percentage after 1 month.
Is there a healthy supply-demand balance? → driver to rider ratio by city.
Are drivers satisfied? → average driver rating of Uber experience; aggregate driver ratings of riders.
Are drivers productive? → earnings per hour.
Success Metrics for Riders
Is the rider base growing? → number of active riders per week (aim for weekly usage as norm).
Are rides being completed? → ride completion rate vs. cancellation rate.
How frequently are users using Uber? → average rides per user per week.
Are users spending more? → average spend per user per week.
Are riders satisfied? → average rating of Uber by riders, via trip feedback or app store ratings.
Prioritize: Rider growth and ride completion rates are top priorities; usage frequency and spend are secondary; user satisfaction is tertiary.
Decisions
Prioritization of North Star and critical supporting metrics over exhaustive metric lists — Rationale: Demonstrates product leadership and aligns metrics to product vision and business goals.