Uber wants to design a Subscription Service, what will your key areas of consideration, and how will you price it. Also design the algorithm/logic how will you match the drivers. What are the various administrative considerations you’ll have to consider?

Question

Accepted Answer

Considerations and pricing for designing Uber's Subscription Service, including driver matching algorithm and administrative considerations.

Key considerations: target market, pricing strategy, benefits and features, competition analysis
Pricing: determine subscription tiers, pricing models (e.g., flat fee, usage-based), value-based pricing
Driver matching algorithm: consider factors like proximity, availability, driver ratings
Administrative considerations: subscription management, billing and payment systems, customer support

Accepted Answer

I first tried to get clarity on the objective for designing the service. We both decided it is not as much about cost advantage, but about reliability i.e. giving the assurance that the rider will get priority over other riders and gets his/her Uber at the
given time.

Interviewer nudged me to draw the user flow and design for both scenarios - when the
feature is first announced (education part for customer) and for a regular user.

Then I listed out the various factors (using PESTLE framework) that needed to be considered — this came in handy when I went on to do Pricing (next step) For the pricing, I incorporated loss due to dynamic pricing into ‘value-based pricing’. This
is after doing cost-based and broadly competitor based pricing

Uber wants to design a Subscription Service, what will your key areas of consideration, and how will you price it. Also design the algorithm/logic how will you match the drivers. What are the various administrative considerations you’ll have to consider?

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