## Doubling Uber Pool Revenue: Acing Your FAANG Product Management Interview

This guide will equip you with the knowledge and framework to tackle a common product management interview question: **How will you double Uber Pool revenue?**

Introduction

Product management interviews at top tech companies like FAANG often involve challenging questions that demand structured, analytical, and creative thinking. Revenue optimization is a core responsibility for product managers, and this guide will help you navigate such questions using a systematic approach.

Framework Application

We’ll utilize a modified version of the CIRCLES Method™, a framework from “Decode and Conquer” tailored for product design and improvement questions. Here’s how to apply it to doubling Uber Pool’s revenue:

1. Comprehend the Situation:

• Clarify assumptions about Uber Pool’s current state:
• How does it work?
• What is its current revenue?
• Who are the primary users?

2. Identify the Customer:

• Determine the target customer segment for Uber Pool.
• Understand their needs, preferences, and pain points.

3. Report the Goal:

• Define “doubling the revenue” in numerical terms.
• Establish time frames and key performance indicators (KPIs).

4. Cut through the Problem:

• Break down the revenue model into components:
• Number of rides
• Pricing per ride
• Utilization rates
• Analyze each aspect to identify growth opportunities.

5. List Solutions:

• Brainstorm solutions across marketing, operational efficiency, and product enhancements.

6. Evaluate Trade-offs:

• Weigh the pros and cons of each solution, considering costs, feasibility, and impact.

7. Solve and Summarize:

• Select the most promising solutions and synthesize them into a coherent strategy.

Example:

**Comprehend the Situation:** Assume Uber Pool currently makes $100 million annually, primarily from urban riders seeking cost-effective travel.

**Identify the Customer:** The primary users might be young professionals, students, and environmentally conscious riders who are price-sensitive.

**Report the Goal:** Set a clear goal to reach $200 million in revenue within 2 years, focusing on increasing ridership and improving margins.

**Cut through the Problem:** Identify underutilized routes with high demand potential or off-peak hours where incentives could increase rides.

**List Solutions:** Consider strategies like dynamic pricing, enhancing the match algorithm, targeted promotions, or a loyalty program.

**Evaluate Trade-offs:** Dynamic pricing might maximize profit per ride but could alienate cost-sensitive users, while targeted promotions could boost ridership but reduce margins.

**Solve and Summarize:** Develop a multifaceted approach that includes refining pricing models, expanding service areas, and implementing a referral program for new users.

Effective Communication

• Be concise and articulate your thought process clearly.
• Ask clarifying questions to understand the problem space.
• Use data points to back up your assumptions.
• Show enthusiasm and a genuine interest in problem-solving.

Conclusion

Doubling Uber Pool’s revenue is a significant challenge, but with a structured approach like the CIRCLES Method™, you can provide a well-thought-out strategy. Remember to break down the problem, understand your customer, and consider the trade-offs of potential solutions. As you prepare for your interviews, practice applying this framework to similar questions and refine your problem-solving tactics. With dedication and strategic preparation, you’ll be well on your way to impressing your FAANG interviewers and achieving your career goals in product management.