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Uber Analytics Test
The document outlines a comprehensive course designed to prepare candidates for the Uber analytics test, which is crucial for various managerial positions. It details the test format, including the number and types of questions, as well as recommended time allocations for each section. Additionally, it covers essential theories behind Uber's business model, metrics, and pricing strategies, particularly focusing on surge pricing and its effects on demand and supply.
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Uber Analytics Test
- 1. Uber Analytics Test TheComplete Course to Ace The Analytics Test for General Manager, Associate General Manager, Operations and Logistics Manager and Marketing Manager positions at Uber. 1coursetake.com
- 2. Course Outline 1. TestDetails – Here we will cover what to expect on the test. 2. Theory - Here we’ll go through theory around Uber’s business model, pricing strategy, metrics etc. 3. Quantitative Questions – First CSV - On the test you will be presented with 2 CSVs. Questions are based on them and we’ll cover both a number of questions and answers in this section. 4. Quantitative Questions – Second CSV - We’ll go through questions and answers based on the second file in this section. 5. General Multiple Choice Questions - We’ll then look at general questions aimed at your knowledge of Uber’s business as a whole. 6. Short Answers – We’ll cover short answers that you’ll be expected to write. 7. Long Answers - We’ll then cover long answers that you’ll be expected to write. 8. Conclusion - We’ll finally conclude the course in this section with some last minute tips. coursetake.com 2
- 3.
- 4. Test Details |Uber Analytics Test Overview • The overall interview process at Uber starts with a recruiter screen about the position that you are applying for. • Once the recruiter is satisfied, he or she will invite you to take the Uber Analytics Test. • This test has been reported specifically in the following positions: • General Manager • Associate General Manager • Operations and Logistics Manager • Marketing Manager • Successful completion of this test is necessary to move forward in the interview process i.e. to Interview # 3. coursetake.com 4
- 5. Test Details |Format of the Test • You will receive an email from the recruiter that contains a link to the following: • A total of 32 questions divided as follows: • 28 multiple choice questions • 4 short and long answer questions • Additionally the link will contain 2 downloadable CSV files. • The 28 multiple choice questions contain: • 8-10 questions based on CSV file 1 • 8-10 questions based on CSV file 2 • 8-10 multiple choice questions that are business, operations, logistics and marketing based (may or may not be based on the CSVs) coursetake.com 5
- 6. Test Details |Format of the Test (continued) • The 4 short and long answer questions contain: • 2 short answer questions • 2 long answer questions • You have a total of 2 hours to complete the test. • Students have reported that a total of 70% is needed to move onto the next set of interviews. • Do note that you can revisit any question on the test. Important Point – You have 2 Hours To Complete coursetake.com 6
- 7. Test Details |My Suggestion on Time Breakdown • First CSV – 30 minutes • Second CSV – 25 Minutes • General Multiple Choice Questions – 25 Minutes • Short Answers – 10 Minutes • Long Answers – 15 Minutes • Revision and Submission – 15 Minutes • Total = 120 minutes = 2 hours Important Point - Give enough time to revise as well. coursetake.com 7
- 8. Test Details |What do you need to succeed? • Know Excel very well. • Be fast at manipulating data. • Understand the theory behind Uber’s business. • Understand Uber’s operations, logistics and marketing. • Communicate effectively. • Be Creative. By the end of this course, you will be well prepared to ace the test coursetake.com 8
- 9.
- 10. Theory | OnDemand Economy • An On-Demand Economy is defined as the economic activity created by technology companies that fulfill consumer demand via the immediate provisioning of goods and services. • Uber is one such company that pioneered the concept of the On-Demand Economy. • Uber is a platform that connects riders to independent drivers (“driver partners”) who are nearby, all done via the Uber mobile app. coursetake.com 10
- 11. Theory | UberBusiness Model • Riders open the Uber app to see the availability of rides and the price and can then choose to request a ride. If a rider chooses to request a ride, the app calculates the fare based on time and distance traveled and bills the rider electronically. • Uber divides the fare, usually 80% to the driver and 20% to Uber. • Payment is secure because riders pay only via credit card using Uber app. • In the Uber context, Demand is measured via Riders or Passengers, while Supply is measured via Drivers or Driver Partners. coursetake.com 11
- 12. Theory | UberMetrics Lets understand some basic terminology around Uber. This will help us answer some of the multiple choice answers at ease. • App Openings (Eyeballs) – The number of customers who launch the Uber app looking for vehicles. • App openings is a good measure of demand (more later). • Zeroes – The number of customers who open the app and see no Uber cars in the area. • Requests – The number of customers who make requests for an Uber car. • Completed Trip – The point from when a customer is picked up and dropped off successfully. • Completion Rate – The percentage of requests to the completed trips. coursetake.com 12
- 13. Theory | UberMetrics • Driver Supply – Number of drivers on the road unoccupied. • ETA/Wait Time – The time a customer has to wait to be picked up by a driver. • Idle Time – The amount of time a driver has to wait between trips. • Peak Time – When demand is extremely high. • Working Shift/Work Day – The work shift for a driver. Usually 8 – 10 hours. coursetake.com 13
- 14. Theory | SurgePricing • In the event that there are relatively more riders than driver partners such that the availability of driver partners is limited and the wait time for a ride is high or no rides are available, Uber employs a “surge pricing” algorithm to equilibrate supply and demand. • The algorithm assigns a simple “multiplier” that multiplies the standard fare in order to derive the “surged” fare. The surge multiplier is presented to a rider in the app, and the rider must acknowledge the higher price before a request is sent to nearby drivers. coursetake.com 14
- 15. Theory | SurgePricing (Continued) • Why Surge Pricing? • Driver partners are free to work whenever they want and must be incentivized to provide services. Under these conditions, economic theory tells us that using prices to signal to riders that rides are scarce and inducing driver partners to forgo other activities will close the gap between supply and demand and lead to improved outcomes for both riders (as a whole) and driver partners. • The first beneficial effect of surge is to increase the number of driver partners in the area. Surge signals that this is a valuable time to be on the road. • This increase in driver partner supply is also a net win for riders in the area because more of them are able to take advantage of Uber services. coursetake.com 15
- 16. Theory | SurgePricing – Net Effect • App openings are a good representation of those who are in the market for Uber’s services and thus provide a nice measure of demand. • During Surge Pricing, the number of app openings increase a lot. • The second effect of surge pricing is to allocate rides to those that value them most. • While the number of app openings increases dramatically, the number of actual requests doesn’t increase by as much. This comes from riders who open the app, see the surge pricing is in effect and decide to take an alternate form of transportation or chose to wait for surge pricing to end. • Most of the increase in prices was passed on to driver partners, who benefited from the increased demand. coursetake.com 16
- 17. Theory | SurgePricing – Net Effect • Completion Rate (percentage of requested rides that end in a completed trip) doesn’t change. • Surge filters out those riders only who value Uber. • Surge brings out more drivers onto the road. • Both these effects equalize supply and demand. • Wait Times/ETAs do not increase with Surge. • Not only did everybody that wanted an Uber ride (at the market clearing price) get allocated one, but this allocation happened within a short amount of time. coursetake.com 17
- 18. Theory | NoSurge Pricing When Demand is High • What happens when Demand is high (via a number of app openings) and NO surge kicks in. • In the absence of surge pricing, we might expect the gap between supply and demand to be large. • Requests go up dramatically and then they drop drastically. • The ETAs increase dramatically. • Completion rates decrease dramatically. • The entire marketplace fails from an economic perspective causing a large difference in demand and supply. coursetake.com 18
- 19. Get the entirecourse • Get the entire course at coursetake.com for a very low price of $19.99 coursetake.com 19
Editor's Notes
- #2 Welcome to our course on Uber’s Analytics Test. The Complete Course to Ace The Analytics Test for General Manager, Associate General Manager, Operations and Logistics Manager and Marketing Manager positions at Uber.
- #3 This is what we’ll be covering in the entire course. Test Details – Here we will cover what to expect on the test. Theory - Here we’ll go through theory around Uber’s business model, pricing strategy, metrics etc. Quantitative Questions – First CSV - On the test you will be presented with 2 CSVs. Questions are based on them and we’ll cover both a number of questions and answers in this section. Quantitative Questions – Second CSV - We’ll go through questions and answers based on the second file in this section. General Multiple Choice Questions - We’ll then look at general questions aimed at your knowledge of Uber’s business as a whole. Short Answers – We’ll cover short answers that you’ll be expected to write. Long Answers We’ll cover long answers that you’ll be expected to write. And finally Section 8. The Conclusion - We’ll finally conclude the course in this section with some last minute tips.
- #4 So lets get started. Section 1 Test Details
- #5 Test Overview The overall interview process at Uber starts with a recruiter screen about the position that you are applying for. Once the recruiter is satisfied, he or she will invite you to take the Uber Analytics Test. This test has been reported specifically in the following positions: General Manager Associate General Manager Operations and Logistics Manager Marketing Manager Successful completion of this test is necessary to move forward in the interview process i.e. to Interview # 3.
- #6 Format of the Test You will receive an email from the recruiter that contains a link to the following: A total of 32 questions divided as follows: 28 multiple choice questions 4 short and long answer questions Additionally the link will contain 2 downloadable CSV files. The 28 multiple choice questions contain: 8-10 questions based on CSV file 1 8-10 questions based on CSV file 2 8-10 multiple choice questions that are business, operations, logistics and marketing based (may or may not be based on the CSVs)
- #7 The 4 short and long answer questions contain: 2 short answer questions 2 long answer questions You have a total of 2 hours to complete the test. Students have reported that a total of 70% is needed to move onto the next set of interviews. Do note that you can revisit any question on the test. Important Point – You have 2 Hours To Complete
- #8 My Suggestion on Time Breakdown First CSV – 30 minutes Second CSV – 25 Minutes General Multiple Choice Questions – 25 Minutes Short Answers – 10 Minutes Long Answers – 15 Minutes Revision and Submission – 15 Minutes Total = 120 minutes = 2 hours Important Point - Give enough time to revise as well.
- #9 What do you need to succeed? Know Excel very well. Be fast at manipulating data. Understand the theory behind Uber’s business. Understand Uber’s operations, logistics and marketing. Communicate effectively. Be Creative. By the end of this course, you will be well prepared to ace the test
- #10 Section 2. Theory
- #11 On Demand Economy An On-Demand Economy is defined as the economic activity created by technology companies that fulfill consumer demand via the immediate provisioning of goods and services. Uber is one such company that pioneered the concept of the On-Demand Economy. Uber is a platform that connects riders to independent drivers (“driver partners”) who are nearby, all done via the Uber mobile app.
- #12 Uber Business Model Riders open the Uber app to see the availability of rides and the price and can then choose to request a ride. If a rider chooses to request a ride, the app calculates the fare based on time and distance traveled and bills the rider electronically. Uber divides the fare, usually 80% to the driver and 20% to Uber. Payment is secure because riders pay only via credit card using Uber app. In the Uber context, Demand is measured via Riders or Passengers, while Supply is measured via Drivers or Driver Partners.
- #13 Metrics Lets understand some basic terminology around Uber. This will help us answer some of the multiple choice answers at ease. App Openings (Eyeballs) – The number of customers who launch the Uber app looking for vehicles. App openings is a good measure of demand (more later). Zeroes – The number of customers who open the app and see no Uber cars in the area. Requests – The number of customers who make requests for an Uber car. Completed Trip – The point from when a customer is picked up and dropped off successfully. Completion Rate – The percentage of requests to the completed trips.
- #14 Driver Supply – Number of drivers on the road unoccupied. ETA/Wait Time – The time a customer has to wait to be picked up by a driver. Idle Time – The amount of time a driver has to wait between trips. Peak Time – When demand is extremely high. Working Shift/Work Day – The work shift for a driver. Usually 8 – 10 hours.
- #15 Surge Pricing In the event that there are relatively more riders than driver partners such that the availability of driver partners is limited and the wait time for a ride is high or no rides are available, Uber employs a “surge pricing” algorithm to equilibrate supply and demand. The algorithm assigns a simple “multiplier” that multiplies the standard fare in order to derive the “surged” fare. The surge multiplier is presented to a rider in the app, and the rider must acknowledge the higher price before a request is sent to nearby drivers.
- #16 Why Surge Pricing? Driver partners are free to work whenever they want and must be incentivized to provide services. Under these conditions, economic theory tells us that using prices to signal to riders that rides are scarce and inducing driver partners to forgo other activities will close the gap between supply and demand and lead to improved outcomes for both riders (as a whole) and driver partners. The first beneficial effect of surge is to increase the number of driver partners in the area. Surge signals that this is a valuable time to be on the road. This increase in driver partner supply is also a net win for riders in the area because more of them are able to take advantage of Uber services.
- #17 Net Effect of Surge Pricing App openings are a good representation of those who are in the market for Uber’s services and thus provide a nice measure of demand. During Surge Pricing, the number of app openings increase a lot. The second effect of surge pricing is to allocate rides to those that value them most. While the number of app openings increases dramatically, the number of actual requests doesn’t increase by as much. This comes from riders who open the app, see the surge pricing is in effect and decide to take an alternate form of transportation or chose to wait for surge pricing to end. Most of the increase in prices was passed on to driver partners, who benefited from the increased demand.
- #18 Completion Rate (percentage of requested rides that end in a completed trip) doesn’t change. Surge filters out those riders only who value Uber. Surge brings out more drivers onto the road. Both these effects equalize supply and demand. Wait Times/ETAs do not increase with Surge. Not only did everybody that wanted an Uber ride (at the market clearing price) get allocated one, but this allocation happened within a short amount of time.
- #19 No Surge Pricing When Demand is High What happens when Demand is high (via a number of app openings) and NO surge kicks in. In the absence of surge pricing, we might expect the gap between supply and demand to be large. Requests go up dramatically and then they drop drastically. The ETAs increase dramatically. Completion rates decrease dramatically. The entire marketplace fails from an economic perspective causing a large difference in demand and supply.