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Launch Uber in a new city
How would you launch uber in a new city? What would be the metrics for deciding a successful launch.
+1 vote
How would you launch uber in a new city? What would be the metrics for deciding a successful launch.
in Product Launch by (33 points) | 2.6k views

2 Answers

+2 votes
First, I'd like to clarify a few things-

a) Uber has many services for e.g. Uber-ride sharing, Uber eats or UberBike etc. Which services are we launching?

b) Are there any particular customer segments that we are targeting to acquire maximum new customers from?

Let's assume we are launching Uber-ride sharing services and are not particularly targeting a single customer segment but all.

First, let me define the KPIs/metrics that we can measure to determine the success for the launch.

To measure customer acquisition, our metrics would be the following:

a) Active sign-ups per day  (Signed up users that have booked at least 1 completed trip using the service)

b) Total sign-ups per week/month

c) Rides completed per new customer per week or month

To measure customer retention, our metrics would be the following:

a) Rides completed per 2nd/3rd/4th weeks after sign up

b) Passive (no rides completed)  to Active sign ups ratio

To measure customer satisfaction, our metrics would be the following:

a) Cancellations made per customer per week or month

b) Average ratings provided per customer per month

Keeping the above KPIs in mind, these would be my top considerations for the launch:

1. Promotions: Make sure Uber promotional (launch) campaigns penetrates more than 80% of the city population. The messaging should clearly state the value that Uber brings to people's everyday lives. They should be attractive (sign up discounts, vouchers, other promotions) in order to ensure total sign ups per week/month go up.

2. Booking guidance within the app: Product should have feature around hand holding first-time user from on-boarding, navigating destinations, selecting vouchers until successful booking. This should help with Active sign ups per week and Passive to Active conversion ratios.

3. Driver training: Have new drivers go through rounds of robust training to ensure customer service standards are met. This will impact the metrics: cancellation per week/month and avg. ratings per customer/ month.

4. Availability: Understand the demand and supply side requirements and pre-determine the number of cabs required on the road during the launch. Mitigate any risks associated with safety. This will result in high number of completed rides after the launch.

In summary, a successful launch is possible and measurable not only by making sure KPIs for customer acquisition are met but also by making sure customer retention and satisfaction are measured. A wholesome list of KPIs that covers all areas of impact is what I recommend in my solution here.
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Great answer, to the point. One more thing which could be part of this was metrics to track cash flow where availability of cabs completely depend on the more drivers you approach which would require more funds.
Therefore, a factor of available funds and resources should also be taken in account while launching uber service in a city. Feel free to correct me if I am wrong.
A good answer but not the perfect way to start. You are launching an Uber service and assumed about launching uber rideshare service. That's a big assumption. One simple way to think about this is - If Uber came to you and gave the same problem statement, would you launch the rideshare service in this fashion? What would be your Strategy?
+1 vote

In order to launch Uber in a new city, it needs to focus on the below :

Firstly, there are some clarifying questions that needs to be answered- Is this new city in the same country or different country, is it a metro or a non metro (tier 2, tier 3, tier 4). How do we define the boundaries of the city? 

  • Business objective - Does Uber want to focus on New user acquisition, Profitability, Revenue, #Drivers , Coverage/ availability ?
  • Customer segments - Consider factors like Demographics, Income, Martial status, Profession, Existing customer profile in other cities
  • Customer segment needs & pain points
  • Supply side driver profile 
  • Driver needs and pain points (specific to that city) 
  • Launch timings - Will it be launched 24*7 full time or only for a particular set of hours
  • Potential market size 
  • Any competitors currently operating 
  • Available alternatives 
  • How to differentiate 
  • How to promote the product (both to demand and supply side )
  • Who will be the partners 
  • What will be the launch plan (full fledged or with limited features)
  • How to acquire the drivers 
  • Are there any similar cities that Uber is already operating (good to learn the best practices)
  • SWOT analysis of Uber with respect to the city and competitors
  • Legal considerations and regulations prevalent in the city 
  • City culture and norms of right and wrong behavior 
  • City economy in general - Industry types, how people earn money, what are the rush hours, how busy is the city in terms of economic and tourist activities 
Below will be some of the key metrics - 
  1. Avg #Drivers available (location wise and time piece wise breakup)
  2. #Ride Requests 
  3. #Rides 
  4. Avg ride duration 
  5. #Unique riders 
  6. #Request per rider per week
  7. Avg revenue per users (time piece wise breakup)
  8. Avg customer rating & feedback for the app 
  9. #App installs (time piece wise breakup)
  10. Avg # rides per driver (time piece wise breakup)
  11. Avg duration of rides per driver (time piece wise breakup)
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