Evaluate Rider-Incentive Program Impact with Key Metrics

Q: Evaluate Rider-Incentive Program Impact with Key Metrics

This question evaluates a data scientist's skills in experimental design, causal inference, metrics engineering, and analysis for two‑sided marketplaces, with emphasis on measuring demand, supply, and matching-quality impacts while accounting for externalities and heterogeneous effects.

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Question

Scenario

You are designing an evaluation for a new rider-incentive program in a two‑sided ride‑hailing marketplace (riders request trips; drivers supply trips). The goal is to measure the program’s causal impact on demand, supply, and overall matching quality, while handling marketplace externalities.

Task

Propose an experiment or analysis design to assess the impact of the rider‑incentive feature.
List key metrics for:
- Riders
- Drivers
- Overall matching quality
Recommend any additional metrics and explain why they matter.
Explain how you would measure these effects even if you know little about the feature’s internal design.

Hints: Define treatment vs control; choose a unit of randomization; include engagement, earnings, conversion, wait time; consider externalities and heterogeneous effects.

Evaluate Rider-Incentive Program Impact with Key Metrics

Scenario

Task

Solution

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