Uber product bet: a new feature that keeps customers longer or grows what each spends

Quick Overview

An Uber product manager prompt asking which major feature to launch next in the Uber app to raise customer retention, average spend per customer, or both. It tests defining the target metric, choosing a customer segment, weighing feature options against marketplace costs, and planning a measurement approach that proves the impact.

Uber product bet: a new feature that keeps customers longer or grows what each spends

Company: Uber

Role: Product Manager

Category: Product Design & Strategy

Difficulty: medium

Interview Round: Other

Imagine you are a product manager at Uber. What is the next big feature you would launch in the Uber app to improve customer retention, average spend per customer, or both? Say which metric or metrics you are targeting, pick one feature, justify it against the alternatives you considered, and explain how you would know it worked. ```hint Pin the metric first Decide which of the two metrics you are moving and how you would measure it, then look for the customers whose current behavior holds that metric back before you brainstorm features. ``` ### Clarifying Questions - Does "the Uber app" mean ride-hailing only, or also food and grocery delivery, which share the same customer account? - Which market should the launch serve first? - Is there an existing company definition of retention and average spend to move, or should I propose one? - What time horizon matters: impact within a quarter, or a longer-term bet? ### What a Strong Answer Covers - Which of the two metrics is targeted, how each is defined, and how a feature could trade one against the other - Customer segments compared, with one chosen based on where the targeted metric has the most room to move - That segment's unmet needs, each tied back to the targeted metric - Several feature options compared on metric impact, effort and cost to drivers, couriers or merchants, ending in one recommendation with its first version - A measurement plan with a primary metric, guardrails, and the main risks to margin and marketplace balance ### Follow-up Questions - If the feature lifts spend per customer but retention falls, how would you decide whether to keep it? - How would you separate the feature's effect from seasonality, price changes and promotions running at the same time? - How would your choice change if Lyft matched the feature within a few months?

Overview: An Uber product manager prompt asking which major feature to launch next in the Uber app to raise customer retention, average spend per customer, or both. It tests defining the target metric, choosing a customer segment, weighing feature options against marketplace costs, and planning a measurement approach that proves the impact.

Uber logo
Uber
Nov 27, 2023
mediumProduct ManagerOtherProduct Design & Strategy
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Imagine you are a product manager at Uber. What is the next big feature you would launch in the Uber app to improve customer retention, average spend per customer, or both? Say which metric or metrics you are targeting, pick one feature, justify it against the alternatives you considered, and explain how you would know it worked.

Clarifying Questions Guidance

  • Does "the Uber app" mean ride-hailing only, or also food and grocery delivery, which share the same customer account?
  • Which market should the launch serve first?
  • Is there an existing company definition of retention and average spend to move, or should I propose one?
  • What time horizon matters: impact within a quarter, or a longer-term bet?

What a Strong Answer Covers Guidance

  • Which of the two metrics is targeted, how each is defined, and how a feature could trade one against the other
  • Customer segments compared, with one chosen based on where the targeted metric has the most room to move
  • That segment's unmet needs, each tied back to the targeted metric
  • Several feature options compared on metric impact, effort and cost to drivers, couriers or merchants, ending in one recommendation with its first version
  • A measurement plan with a primary metric, guardrails, and the main risks to margin and marketplace balance

Follow-up Questions Guidance

  • If the feature lifts spend per customer but retention falls, how would you decide whether to keep it?
  • How would you separate the feature's effect from seasonality, price changes and promotions running at the same time?
  • How would your choice change if Lyft matched the feature within a few months?