Product Strategy - Uber Ride Cancellation Analysis
“In India, many Ola/Uber/Rapido drivers cancel rides if the rider’s payment mode is not cash. Why is this happening, and how would you solve it?”
Assumptions:
Geography: India.
Audience: Driver-partners on ride-hailing platforms.
Problem surface: Elevated cancellations for non-cash (UPI/card) payment rides vs cash, hurting reliability and CSAT.
Guardrails: Preserve marketplace health (ETAs, fulfillment), driver earnings fairness, and trust.
Goal
Primary Objective: Reduce non-cash cancellation rate and increase cashless acceptance without depressing driver net earnings.
North Star KPIs
Non-cash ride cancellation rate ↓
Cashless acceptance rate ↑
Guardrails
Driver earnings/hour ≥ baseline
Rider wait time/ETA ≤ baseline
Fraud/chargebacks ≤ baseline
Support tickets (payment/deduction) ↓
Clarifying Questions
Payout latency: T+? for cashless earnings to hit driver bank/UPI?
→ Assume T+1/T+2 typical; some same-day batches.Deductions (commission, rentals, TDS, loans) are netted from cashless but not from cash?
→ Assume yes (perceived “lower take-home” on cashless).Auth failures: How often UPI/card fails at drop?
→ Assume non-trivial, driving driver anxiety.Tips/tolls handling on cashless?
→ Frictional/under-collected vs cash.Policy: Any penalty for cancelling by payment mode?
→ Assume weak enforcement today to avoid driver churn.