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Imagine you are the product manager of Uber. 

What would be the next big feature you would launch on this app to improve (one or both):

a. Customer Retention

b. Average Customer Spend

asked in Metrics by (12 points) | 274 views
0
It's not a metric question as question is not asking to measure success of a feature, instead it's asking for ways to improve customer retention/avg spend so it should be tagged in improvement category.

Let me know your thoughts

1 Answer

+1 vote

Explain product/feature 

Its Uber

Scope 

  • Increase retention
  • avg. spend 

No further clarification needed 

User groups

  • Business users
  • Local Commuters/short city rides
  • Tourists
  • Students
  • Shared rides

Pick a group: Local Commuters

  • Because they have a lot of options to chose from for local travel (Car, pub transport, e-bikes, walking). 
  • Focussing on retention for this group should support repeat usage and help drive average spend 

Needs/pain points 

  1. Don’t want to get into a car for a short rides too often 
  2. Want to save cost  
  3. Environment conscious 
  4. Having to make a conversation with driver for such a short drive 
  5. Effort of ordering/timing/getting into uber ride vs other options to get to destination 

Prioritise them as 1,2,4,5,3 based on how big an impact they can have on retention vs cost/investment 

Solutions 

  1. Offer option to pick a e-scooter/e-bike within app to get to a destination (shared bike/scooters)
  2. Introduce e-Scooter drivers who can pick up and drop - possibly lower ride cost than car
  3. Introduce walking/public transport route options in the app like google maps so customers use uber first instead of 
  4. Introduce driver training for short rides and add drive app features to identify if customers prefer chit chats or not and then customise uber users experience for short rides 
  5. Show how much positive impact they have on environment if they use uber share/ride (so they don’t feel conscious of using uber for local commute)

Evaluate solutions 

  1. This might require significant investment as its almost developing a new experience within uber + huge cost of owning and maintaining fleet of e-bikes/scooters. A partnership here might be an interesting opportunity to retain uber users from going to other services 
  2. This is more realistic although requires more significant development towards introducing scooter drivers (regulatory, driver supply, training, unit economics). Some customers might not be too excited about riding a scooter
  3. This requires significant development effort on app side to aggregate public transport data/perfecting route timings using cycle other options … but this will allow uber to become the go to app and hence improve retention significantly. And possibly allow to partner and offer other cannibalising transport services such as ebikes via uber app. (Strong MOAT)
  4. This should be fairly easy to implement and will ensure customers using uber of short rides get a better experience and continue to use the service 
  5. This might be a bit more difficult to implement and possibly deliver less impact 

Prioritise them as 4,3,2,1,5


Recommendation 

Given all the innovation in last mile travel due to ebikes/scooters, uber has a significant threat and therefore focusing on features such as 2/1 will help a) increase retention b) add a MOAT c) drive average spend as uber will take bigger share of short journeys away from bikes/public transport/scooters. However 4,3 are fairly low investment/high impact features on cust. exp. that should help in improving retention in short term

answered by (15 points)
edited by

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