Product Manager

How could you minimize ride cancellations on Uber?

A case study to minimize ride cancellations and enhancing rider experience on Uber written as a part of Unstop interview process in the case study round

  • Product Strategy
  • Case Study
  • Technology
  • Unstop

Problem

A case study to minimize ride cancellations and enhancing rider experience on Uber written as a part of Unstop interview process in the case study round

How can Uber enhance rider experience & minimize ride cancellations through product Innovation?

Version 1.1 | Revised on August 31, 2023 Made by Roshan Raj Mishra | Gmail | LinkedIn

Table of Contents

1. About

1.1 About Uber

Uber is a globally recognized and pioneering ride-hailing platform that has transformed the way people move around in urban environments. Founded in 2009, Uber’s innovative approach to transportation has reshaped the industry by offering a convenient, reliable, and user-friendly way for individuals to book rides using a mobile app.

1.2 Mission of Uber

Uber’s mission is deeply rooted in creating opportunity through movement. The company aims to provide affordable and accessible transportation options that not only address the challenges of urban mobility but also create economic opportunities for both riders and drivers. By leveraging technology and a commitment to innovation, Uber strives to make transportation seamless and reliable for everyone.

1.3 Vision

Uber’s vision extends beyond just providing rides. The company envisions a future where transportation is seamlessly integrated into the fabric of cities, resulting in reduced congestion, decreased environmental impact, and enhanced convenience for riders. This vision reflects Uber’s ambition to be a transformative force in urban mobility, contributing to the creation of smarter and more sustainable cities.

1.4 Values

Uber’s core values serve as guiding principles for its operations and decision-making processes:

  • Safety: Uber places safety as a top priority for both riders and drivers, implementing rigorous safety measures and innovations.
  • Customer Obsession: Uber is dedicated to delivering a superior user experience, continuously improving the app and services based on user feedback.
  • Pushing the Boundaries: Uber embraces innovation and pushes the boundaries of technology to create new possibilities in transportation.
  • Stand Together: The company fosters a sense of unity among its diverse community of riders, drivers, and employees, creating an environment of inclusivity and collaboration.

2. Research

2.1 User Research

Extensive user research has been conducted to understand the preferences and pain points of Uber riders. The research includes user feedback on the App Store

Uber has multiple stakeholders who form the overall set of users of the app, they can be broadly categorized into: Riders, Drivers & Delivery Partners.

Note: We would keep Delivery Partners out of scope of this PRD as Uber Eats was discontinued in India.

2.1.1 User Personas

Riders:

  1. Daily Commuters: Riders who use Uber on a regular basis for their daily commute to work or other routine activities. They value reliability, convenience, and cost-efficiency.

  2. Occasional Travelers: Individuals who use Uber for occasional trips, such as airport rides, social outings, or events. They prioritize convenience and comfort for their specific travel needs.

  3. Tourists and Visitors: Travelers visiting a new city who rely on Uber to navigate unfamiliar locations. They seek ease of use, local recommendations, and reliable transportation options.

  4. Night-Out Seekers: Individuals who use Uber for night-time travel, such as going out to restaurants, bars, clubs, or entertainment venues. They prioritize safe and reliable transportation during late hours.

  5. Business Travelers: Professionals who rely on Uber for business trips, meetings, and corporate travel. They value efficiency, ease of expense reporting, and timely arrivals.

  6. Parents and Families: Riders traveling with children or family members, requiring spacious vehicles or child-friendly features. They prioritize safety, comfort, and family-oriented services. Drivers:

  7. Part-Time Drivers: Individuals who drive for Uber on a part-time basis to earn extra income. They value flexibility and the ability to choose their working hours.

  8. Full-Time Drivers: Drivers who rely on Uber as their primary source of income. They seek consistent demand, optimal routes, and efficient use of their time.

  9. Retirees and Seniors: Older individuals who drive for Uber as a means to stay active, engaged, and earn supplementary income during retirement.

  10. Students: College students who drive for Uber to cover education-related expenses. They value flexible schedules and the ability to balance work and studies.

  11. Entrepreneurs: Individuals who see driving for Uber as a way to start their entrepreneurial journey. They value the opportunity to manage their own “business” within the platform.

2.1.2 User Problems

The user problems have been extracted from Google Play Store & Apple App Store Reviews of Rider App as well as Driver App.

Doing a sentimental analysis and categorization with ChatGPT broadly classified the reviews into the following categories and ranked them based on the frequency of these reviews.

Rider Reviews:

  1. Driver Behavior & Cancellations

“Only problem is the drivers cancels the ride 8 out of 10 times I’ve used Uber. It is really frustrating when you are in a hurry.”

“The drivers accept the ride and just don’t show up or pick up calls. There is no option to request a new driver, can only cancel the ride and it charges fees.”

“Drivers cancel the trip without any valid reason. Highly recommend not to use this app, especially not for the emergency purpose.”

  1. App Performance & Reliability

“Great app and all. But it’s absolutely useless for long rides. It disconnects from the server and crashes.”

“Wait times are falsely advertised when booking. Timer doesn’t update accurately.”

“The app forced me to choose one of the Air Force Base gates as a pick up point despite not being on the base. Multiple drivers rejected my request.”

  1. Customer Support & Communication

“Really ideal until it comes to requesting help or information it’s a whole ordeal that is just unnecessary.”

“If you’re an older individual that doesn’t understand technology to the same extent as us, they are left in unnecessary stress with no way to get answers from the help line.”

“The app is now forcing us to leave tips, unless we give the driver a 1-star review.”

  1. Billing & Payment Issues

“I think I was charged $11.98 twice - not a good impression to pay $24 for a 6 mile one-way trip.”

“1st of all when I book any car from this apps, then show the fare charts very reasonable, after some times suddenly the fare chart is another/very high.”

  1. Booking & Navigation Challenges

“Finding an option to talk to an agent takes 15 minutes.”

“The heading time shows something else and the time just keeps on increasing. Nor is the location updated on measurement.”

“The app connects you to the farthest driver plus the driver cancel the trip without any valid reason.”

  1. User Interface & Experience

“Lack of intuitive and user-friendly UI, causing frustration among riders who find it difficult to navigate and use the app.”

“Negative impression of the app’s interface design, with some users refusing to use apps that are not intuitive.”

Driver Reviews:

  1. App Functionality and Features:

“App sends many pointless notifications that 90% of the time aren’t important or don’t care about.”

“Map that shows peak hours for delivery is completely gone and only shows earnings potential for rides.”

“Card activation data fields missing. Earnings forecast broken.”

  1. Navigation and GPS Issues:

“GPS on this app is bad. Use Google Maps in the settings.”

“Navigation is spotty. Pick-up locations are off, and routes are unnecessarily long and out of the way.”

“Pick-up locations are off, and routes are unnecessarily long and out of the way.”

  1. Customer Support and Communication:

“Customer service regularly about pay bonuses. It’s close to an act of God to get all your documents correctly uploaded.”

“Every time they update the app, something goes wrong. It’s very bad that we depend on this app to make a living and Uber won’t fix it.”

“Uber CANNOT maintain one app! It constantly freezes. They have loaded maps on top of each other to the point that it looks like a pitch dark useless map.”

“Uber is a good income, but below are major flaws.”

  1. Order Acceptance and User Interface:

“Once you send in the verification items, the app shifts its entire focus to making you give people rides but I don’t want to do that.”

“Flashes on the screen quickly. Even when I’m doing something else on the phone, the order gets accepted and if I cancel it then my acceptance rate is affected.”

“Orders popping up cover navigation while driving. Incoming orders completely cover the navigation.”

  1. Earnings and Pay Structure:

“The navigation is often wrong and sends you to the wrong place.”

“Pay is way lower than other delivery apps. I don’t like the boost, as it’s hard to understand exactly how much you’ll get paid.”

“Uber makes a lot of promises with meeting bonuses for driving at certain times of the day and accomplishing a certain number of rides, but they don’t pay out the full bonuses.”

  1. App Performance and Stability:

“Last update made it buggy. Route line turns black on a black background and the waypoint pins disappear.”

“App works fine, but PLEASE fix this app. More than once THIS WEEK, I’ve had to go on google maps to navigate because once I reach the destination, it tells me I’ve arrived when I still have two blocks to go.”

“The past few updates have actually been downgrades. Can’t set a destination half the time. Even when I have a destination set you have to reset after every trip.”

Summary of User Problems

Rider Problems:

  • Inconsistent wait times and misleading time estimates for pickups.
  • Frequent ride cancellations by drivers after accepting requests.
  • Unpredictable surge pricing and changes in fare rates.
  • Billing discrepancies and unexpected charges.
  • Frustration with customer support’s responsiveness and assistance.

Driver Problems:

  • Excessive and irrelevant notifications causing annoyance.
  • Buggy navigation with incorrect pick-up locations and routes.
  • Issues with the accuracy and clarity of destination filter.
  • Challenges with earnings and bonuses not being properly paid out.
  • Inability to preview where rides will take them before accepting a ride.

2.2 User Journeys

Link: https://whimsical.com/user-jouney-of-mobility-apps-yPZeuHzUqKmsQ4V3ZFHU8

Note: Please use the +/- buttons at the bottom right side side of the whimsical window (below) to zoom in on the user journey.

2.3 Competitive Research

This is an in-depth analysis of Uber’s competitors, such as Lyft and Ola, has been conducted to identify innovative features and strategies that enhance rider experience and minimize ride cancellations.

(Table from Notion — see original for full data.)

3. Defining the Problem Statement

3.1 What is the goal?

The primary goal is to enhance the rider experience and minimize ride cancellations by 10% on the Uber platform through innovative product solutions.

3.2 Why must Uber pick it now?

Since in a mobility business, switching costs are very low today in India because riders can easily choose another app over Uber when looking to commute.

  1. Competitive Advantage: By enhancing the rider experience and minimizing cancellations, Uber can differentiate itself from rivals like Lyft and Ola. A superior experience draws more riders to Uber’s platform, helping it maintain or expand its market share.
  2. Customer Loyalty: Rider retention is crucial for sustained business success. A positive rider experience builds trust and fosters loyalty among customers. Satisfied riders are more likely to choose Uber over other options, become repeat users, and recommend the service to others. Long-term customer loyalty forms a foundation for consistent revenue and growth.
  3. Revenue Growth: Revenue generation is directly correlated to improving rider experience. When riders are satisfied and confident in the service, they may opt for higher-priced offerings such as premium rides or show increased usage. This boosts the average transaction value and drives higher overall revenue for Uber.

3.3 What does Uber need to focus on as a Company to achieve the goal?

(Table from Notion — see original for full data.)

3.4 Impact

3.4.1 User Impact

  1. Reduction in cancellation rates for riders and drivers improving overall satisfaction
  2. Reduction in waiting time for riders from booking to starting a ride
  3. Increase in driver engagement

3.4.2 Business Impact

  1. Increase in revenue - by reducing cancellations, a driver is able to complete more number of rides in a day
  2. Improved platform reputation - minimizing cancellations enhances the Uber brand and makes them a reliable mobility platform over its competitors and increases trust on the brand
  3. Optimized operations - fewer cancellation would allow Uber to focus on improving the driver deployment and route planning, leading to reduction in idle-time of drivers
  4. Driver retention and satisfaction - drivers who experience fewer cancellations would likely continue working with Uber for a longer duration

4. Current Solutions

Uber currently offers features like real-time tracking, upfront pricing, and driver ratings to improve rider experience and minimize cancellations.

Rider App:

  1. Live Tracking of the Driver

  2. Advanced Notifications

  3. Driver Reviews & Badges

  4. Estimated Time for Arrival

  5. Upfront Pricing Driver App:

  6. Destination hidden from drivers before accepting a ride

  7. Surge Pricing Indicator for lesser cancellation

4.1 Screenshots for Reference

5. Lapses in Current Solutions

Existing solutions may not fully address last-minute cancellations, communication issues, and personalized recommendations, leading to potential frustrations for riders and drivers.

(Table from Notion — see original for full data.)

6. Proposed Solutions

These are the list of feature that can be implemented to achieve the business goals and solve problem statements:

  1. Walk to Save
  2. Pre-Ride Tipping
  3. Smarter Matching Algorithm
  4. Quick Voice Memos
  5. Smarter Carpooling

6.1 Walk to Save

(Table from Notion — see original for full data.)

6.1.1 Mockup

6.2 Pre-Ride Tipping

(Table from Notion — see original for full data.)

6.2.1 Mockups

6.3 Smarter Matching Algorithm

(Table from Notion — see original for full data.)

6.4 Quick Voice Memo

(Table from Notion — see original for full data.)

6.4.1 Mockups

6.5 Smarter Carpooling

(Table from Notion — see original for full data.)

7. Solution Prioritization

We will be using RICE prioritization framework to rank the solutions:

RICE Methodology

RICE Score = (ReachImpactConfidence)/Effort

Scale: Reach, Confidence, Effort, Impact all rated out of 10

(Table from Notion — see original for full data.)

8. Metrics

Discussing the Metrics to track the success of our solutions: We will be using the Pirate Framework (AARRR) Metrics to track the success of the features

Metrics such as ride completion rates, rider satisfaction scores, and reduced cancellation percentages will be used to measure the success of the proposed solutions.

(Table from Notion — see original for full data.)

9. Quality Testing

9.1 Feature: Quick Voice Memo

(Table from Notion — see original for full data.)

9.2 Feature: Smarter Matching Algorithm

(Table from Notion — see original for full data.)

9.3 Feature: Pre-Ride Tipping

(Table from Notion — see original for full data.)

9.4 Feature: Walk to Save

(Table from Notion — see original for full data.)

9.5 Feature: Carpooling

(Table from Notion — see original for full data.)

10. Summary

In this PRD, we explored Uber’s user experience and competition, focusing on ways to enhance rider satisfaction and minimize ride cancellations. We analyzed rider reviews, performed competitive assessments, and proposed innovative solutions such as voice memos, smarter matching algorithms, pre-ride tipping, and the “Walk to Save” feature. We highlighted the importance of usability testing and behavior analysis in quality testing these solutions. The discussion underscored the significance of improving user loyalty, operational efficiency, and differentiation from competitors. Overall, this PRD provides valuable insights for Uber’s strategic decisions and improvements.

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