+1 vote
686 views
How would you launch uber in a new city? What would be the metrics for deciding a successful launch.
asked in Product Launch by (33 points) | 686 views

1 Answer

+1 vote
First, I'd like to clarify a few things-

a) Uber has many services for e.g. Uber-ride sharing, Uber eats or UberBike etc. Which services are we launching?

b) Are there any particular customer segments that we are targeting to acquire maximum new customers from?

Let's assume we are launching Uber-ride sharing services and are not particularly targeting a single customer segment but all.

First, let me define the KPIs/metrics that we can measure to determine the success for the launch.

To measure customer acquisition, our metrics would be the following:

a) Active sign-ups per day  (Signed up users that have booked at least 1 completed trip using the service)

b) Total sign-ups per week/month

c) Rides completed per new customer per week or month

To measure customer retention, our metrics would be the following:

a) Rides completed per 2nd/3rd/4th weeks after sign up

b) Passive (no rides completed)  to Active sign ups ratio

To measure customer satisfaction, our metrics would be the following:

a) Cancellations made per customer per week or month

b) Average ratings provided per customer per month

Keeping the above KPIs in mind, these would be my top considerations for the launch:

1. Promotions: Make sure Uber promotional (launch) campaigns penetrates more than 80% of the city population. The messaging should clearly state the value that Uber brings to people's everyday lives. They should be attractive (sign up discounts, vouchers, other promotions) in order to ensure total sign ups per week/month go up.

2. Booking guidance within the app: Product should have feature around hand holding first-time user from on-boarding, navigating destinations, selecting vouchers until successful booking. This should help with Active sign ups per week and Passive to Active conversion ratios.

3. Driver training: Have new drivers go through rounds of robust training to ensure customer service standards are met. This will impact the metrics: cancellation per week/month and avg. ratings per customer/ month.

4. Availability: Understand the demand and supply side requirements and pre-determine the number of cabs required on the road during the launch. Mitigate any risks associated with safety. This will result in high number of completed rides after the launch.

In summary, a successful launch is possible and measurable not only by making sure KPIs for customer acquisition are met but also by making sure customer retention and satisfaction are measured. A wholesome list of KPIs that covers all areas of impact is what I recommend in my solution here.
answered by
0
Great answer, to the point. One more thing which could be part of this was metrics to track cash flow where availability of cabs completely depend on the more drivers you approach which would require more funds.
Therefore, a factor of available funds and resources should also be taken in account while launching uber service in a city. Feel free to correct me if I am wrong.
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A good answer but not the perfect way to start. You are launching an Uber service and assumed about launching uber rideshare service. That's a big assumption. One simple way to think about this is - If Uber came to you and gave the same problem statement, would you launch the rideshare service in this fashion? What would be your Strategy?
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@kilisfs3 do you have any feedback?

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