You have to launch an Uber Rider pass in your city. What should be the price of the pass?
You have to launch an Uber Rider pass in your city. What should be the price of the pass?
0 votes
352 views
You have to launch an Uber Rider pass in your city. What should be the price of the pass?
in Other by (24 points) | 352 views

1 Answer

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Clarifying question - Is it for a new rider or to increase trips taken by active riders?

Assuming that it is to increase revenue by increasing trips taken by active riders.

Active riders can be of multiple personas

  1. Office goer - Uses Uber daily to go and come back from the office.
  2. Occasional Rider - Prefers other modes of rides but uses Uber in certain specific cases (late to office/new destination/odd timings etc.)
  3. Active Account but no trips - has created an account to use Uber once but is not actively booking trips

Focusing on Occasional Rider since the scope of growth is maximum there.

Assuming that the occasional rider takes 1 trip per week right now. 

The goal is to increase it to 3 trips per week.

Change in number of trips over month - 8 trips

Assuming the average trip costs - 200 rupees after discount

Increase in Revenue - 1600

Assuming that Uber's commission is 20%

Increase in Uber's commision ~ 320 ~ 300 rupees per user per month.

 

The rider pass can be launched at any price between 0 - 300.


Assuming that 50% of the occasional riders do not move to the increased frequency the price can be in the range of 0 - 150

Assuming that profitability is also a pointer to consider - I would price the Uber pass at 100 rupees so that expected profit is 50.

If the number of trips increase the profitability for Uber increases as well.

 

 

by (15 points)
0
Increase in revenue cannot be 1600 as we don't know the previous revenue ,from Thai revenue we have to subtract the previous revenue
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