Success Metrics and Experiment Design for a New Uber Eats Promotions Tab

Quick Overview

A product manager metrics question about a new promotions tab in the Uber Eats app and how to judge whether it is working. It tests goal setting, choosing a primary success metric and guardrails for a three-sided marketplace, and designing an experiment that separates the tab's effect from the promotions themselves.

Success Metrics and Experiment Design for a New Uber Eats Promotions Tab

Company: Uber

Role: Product Manager

Category: Analytics & Experimentation

Difficulty: medium

Interview Round: Other

Uber Eats has added a new promotions tab to its app. As the product manager responsible for it, how would you decide whether it is working? ```hint Incremental, not just used A busy tab is not necessarily a successful one. Ask what the same customers would have ordered, and what Uber would have spent on discounts, if the tab did not exist. ``` ### Clarifying Questions - What is the tab meant to achieve: more frequent orders from existing customers, winning back lapsed ones, first orders from new customers, or more sales for merchants running their own offers? - Who funds the discounts shown in the tab: Uber, the merchants or both? - Has the tab already rolled out to everyone, or can a group of users still be held back from seeing it? - Does it show only restaurant deals, or also grocery and convenience offers and membership perks? ### What a Strong Answer Covers - A stated goal for the tab, covering both the eaters and the merchants it serves - One primary success metric tied to incremental orders or gross bookings rather than tab visits - A funnel for the tab itself, from opening it to placing an order, to explain why the primary metric moved - Guardrails for discount cost, cannibalization of full-price orders, discovery elsewhere in the app, delivery reliability and merchant outcomes - An experiment or holdout that isolates the tab's effect, with a plan for duration, novelty and long-term discount dependence ### Follow-up Questions - Orders placed through the tab are up, but orders per customer are flat overall. What does that tell you, and what would you do? - How would you judge whether the tab is a success for merchants? - How would you detect customers learning to wait for discounts, and what would you change if you saw it?

Overview: A product manager metrics question about a new promotions tab in the Uber Eats app and how to judge whether it is working. It tests goal setting, choosing a primary success metric and guardrails for a three-sided marketplace, and designing an experiment that separates the tab's effect from the promotions themselves.

Uber logo
Uber
Dec 24, 2024
mediumProduct ManagerOtherAnalytics & Experimentation
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Uber Eats has added a new promotions tab to its app. As the product manager responsible for it, how would you decide whether it is working?

Clarifying Questions Guidance

  • What is the tab meant to achieve: more frequent orders from existing customers, winning back lapsed ones, first orders from new customers, or more sales for merchants running their own offers?
  • Who funds the discounts shown in the tab: Uber, the merchants or both?
  • Has the tab already rolled out to everyone, or can a group of users still be held back from seeing it?
  • Does it show only restaurant deals, or also grocery and convenience offers and membership perks?

What a Strong Answer Covers Guidance

  • A stated goal for the tab, covering both the eaters and the merchants it serves
  • One primary success metric tied to incremental orders or gross bookings rather than tab visits
  • A funnel for the tab itself, from opening it to placing an order, to explain why the primary metric moved
  • Guardrails for discount cost, cannibalization of full-price orders, discovery elsewhere in the app, delivery reliability and merchant outcomes
  • An experiment or holdout that isolates the tab's effect, with a plan for duration, novelty and long-term discount dependence

Follow-up Questions Guidance

  • Orders placed through the tab are up, but orders per customer are flat overall. What does that tell you, and what would you do?
  • How would you judge whether the tab is a success for merchants?
  • How would you detect customers learning to wait for discounts, and what would you change if you saw it?