What are the success metrics for an app-based taxi aggregator (competitor of Uber) during the initial phase?

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What are the success metrics for an app-based taxi aggregator (competitor of Uber) during the initial phase?

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J_killjoy · Answer 1 · 2024-09-15T08:54:57+0000

Assumptions/ Clarifications:

I will assume the app to be operating in the same model as Uber and currently doing only Cabs services (no bike/auto).
Also Will assume the geography to be India in metros/tier-1 cities.
Due to duopoly in Indian ride sharing market and some other small competitors, I will assume the key differentiator that this player would project will be lesser wait times and 100% ride guarantee.
Business goal of launch is to enter and capture ride sharing market share in India.
User goal is to enable customers to discover and book cab rides quickly for day to day city commute.

Structure:

1. will list down metrics for both riders and drivers to gauge overall platform health

2. will bucket metrics into acquisition, activation, engagement, retention, revenue, operations and CSAT buckets to cover all aspects of product and business metrics.

3. Will end with my recommendation of North star metric among the listed metrics.

Solution:

Quick recap on user journey of rider and driver

Rider: Discover app organically/inorganically -> Download it from appstore/playstore -> install app -> signup/ Login -> Enter destination -> Search cab -> Wait for driver to arrive -> [cancel] -> [Try another] -> [Exit] -> Board cab -> complete ride -> Pay -> Rate and Review -> Repeat

* [ ] are optional steps

Driver: Discover app organically/inorganically -> Download it from appstore/playstore -> install app -> Signup/ Login -> Complete driver Profile -> Make self available for taking rides -> Get booking notification -> Accept/ [reject] -> Go to pick up location -> verify ride and board rider -> drop at destination -> collect payment -> rate and review -> repeat

Metrics:

1. Acquisition: how are users discovering us and which disocvery modes are effective for us?

a. Downloads -> Installs -> Signups conversion : Cuts - Organic vs Inroganic

b. # new user signups : Cuts -> Driver, Rider

c. CAC : Cut -> channels, Driver, Rider

2. Activation : how many signedup users are converting and active users and how fast?

a. Signup to first ride completed : Cuts -> Driver, Rider

b. Time to conversion : Cuts -> Driver, Rider

3. Engagement : How well are drivers and riders completing the actions throughout their user journey?

a. Total # of rides completed on platform : cuts -> DoD, WoW, MoM

b. Avg. # of rides completed per rider in per week

c. Avg. # of riders completed per driver per day

d. Funnel conversion rate from desination enter till ride rate and review per ride booking session

e. Driver availability rate - % of drivers active on platform each day

f. Ride cancellation rate: Cuts -> Driver, Rider

g. DAU/WAU : Cuts -> rider, driver

4. Revenue :

a. Total revenue Day on Day, Week on Week. Month on month

b. Average completed ride value (rider)

c. Average earnings per cmpleted ride (driver)

5. Retention:

a. D7 retention for riders (those who come back to book a ride again next week)

b. D1 retention for drivers (those who complete at least one ride the next day)

6. NPS/CSAT

a. Avg rating per completed ride : Cuts -> Driver, rider

b. App rating : Cuts -> ios, android; driver app and rider app

7. Operational

a. Contact ratio (% of daily active users who raise a complaint) : Cuts - driver, rider

b. # of Ride cancellations : Cuts - driver, rider ; cancellation categories like driver was late, driver asked for cash, rider was not responding etc

c. Avg. wait time post booking confirmation per ride (rider)

d. Avg. wait time for search to booking confirmation (rider)

e. DAU rider : DAU driver ratio

f. % ride searches resulting in "unable to find a ride" (rider)

NSM: as goal is to enter market and capture initial set of users, the metric which gives an indication of increasing number of users booking rides on our platform is "Total # of rides completed on platform".

Yojana Menda · Answer 2 · 2024-02-14T10:36:56+0000

Since the app is in the initial phase I would focus more on the metrics that help me gauge product-market-fit, so I would focus on Awareness, Adoption and Acquisition more than engagement, retention and monetisation within the first quarter or so post-launch.

So the primary metrics would be CAC, GMV, Total rides done on the platform, Total number of drivers registered, Total number of riders registered, wait times, frequency of rides etc Now I will delve into the conversion levels of each of these metrics.

Awareness — Helps me understand how the marketing channels and ad campaigns are performing
- Riders (Demand side)
  - View and click impressions to digital campaigns
  - NPS (if exists)
  - Feedback social channels — likes, shares, followership etc on social channels like FB, IG etc
- Drivers (Supply side)
  - Word of mouth
  - Enquiries received via mail, phone, social channels etc from drivers and rental companies wanting to partner with us
  - Foot traffic of drivers who want to sign up with us at sales offices
Adoption and activation — Helps me to understand if the users understand the value prop of the app, understand how to navigate within the app and get on the happy path of the user journey
- Riders (Demand side)
  - Total number of app downloads, installs, uninstalls
  - Total number of riders who signed up
  - Time taken for a rider to book the first ride
  - App ratings and reviews
- Drivers (Supply side)
  - Total number of drivers who signed up
  - Average time taken for a driver to get his/her first ride on the platform
Acquisition — Helps me understand if the users find this app useful now that they understand how to use the app. Is there stickiness to the app, is yes
- Rider (Demand side)
  - Average rides of a rider per day/week/month
  - Waiting time for a rider before a cab is assigned
  - Average ride time per day/week/month
  - Average spend per rider
  - Total number of CX tickets raised by riders
- Driver (Supply side)
  - Total number of rides done by a driver in a day/week/month
  - Average distance and duration covered by a driver per day/week/month
  - Average earnings of a driver
  - Total number of CX tickets raised by drivers