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Supply vs Demand Sequencing

Hard
HardStrategyNetwork EffectsGrowth StrategyMarket SizingAsked 1 times

Problem

Scenario

You're advising a marketplace team in a city where trip growth has stalled and marketplace health is uneven by hour and neighborhood. Leadership is debating whether to prioritize a driver supply initiative, such as earnings guarantees and reactivation, or a rider demand initiative, such as promotions and rider win-back. The concern is that pushing demand first could worsen ETAs and cancellations if the market is supply constrained, while pushing supply first could raise incentive spend if rider demand is too soft to absorb added online hours.

Question

How would you evaluate whether a driver supply initiative or a rider demand initiative should come first in a given market?

What to Look For

  • Marketplace balance by geo and time
  • Rider conversion, ETA, surge, fulfillment
  • Driver utilization and earnings per online hour
  • Incremental economics of each initiative
  • Second-order network effects
Practicing as: Product Growth Analyst interview at Uber

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