Design a profit growth strategy
Company: Capital One
Role: Data Scientist
Category: Analytics & Experimentation
Difficulty: hard
Interview Round: Technical Screen
You’re running a ride‑share service. Propose a concrete plan to increase profit over the next quarter while differentiating from street‑hail taxis. Specifically: 1) Prioritize 5 profit levers (e.g., pricing, driver incentives, matching/ETAs, acquisition/retention, cost control) and quantify their expected impact with back‑of‑the‑envelope numbers. 2) Define success metrics and guardrails (e.g., contribution margin/ride, driver online utilization, cancellation rate, wait time, supply fill rate). 3) Explain how supply–demand elasticity and surge pricing interact; outline how you would estimate price elasticity from historical data vs. an experiment. 4) Design one A/B test to validate a pricing or incentive change, including target segments, randomization unit, key metrics, minimal detectable effect, and risk mitigations for marketplace imbalance. 5) Provide two recommendations you would ship first, with risks and how you’d monitor for cannibalization of non‑surge hours.
Quick Answer: This question evaluates a data scientist's competency in product analytics, marketplace economics, pricing strategy, demand elasticity estimation, experimentation, and quantitative impact sizing.