Solving Uber Case Study — (4/7)
Problem statement
Uber is a technology company that is changing the way the world thinks about transportation. We have been growing globally at an incredible pace and are scaling a hyper efficient revenue systems infrastructure.
Our revenue platform environment supports the needs of our customers (e.g. Rider, Driver, Eaters, Restaurants, etc.). A key to Uber’s success is to be able to accurately and completely account for all events on the Uber platform (e.g. trips, Eats orders), quickly and efficiently onboard new LOBs on the platform, flexibly support local business requirements across 70 countries / 700+ cities, scale and integrate with core financial applications, ensure operational effectiveness for our billing team, and provide financial data for business insights and P&L analysis downstream.
What metrics would you focus on in this space?
- Customer obsession
Uber’s business model revolves around the customer. Knowing the customer pain points and fixing the issue on time will create a ripple effect in attracting and sustaining the customer base.
2. Customer acquisition cost
CAC gives a good overview of the marketing efficacy.
3. Customer lifetime value
CLV gives, how much it costs to acquire a new customer and how much that customer will spend with the business.
4. Net customer worth
Net customer worth is important because it allows to define the return on investment (ROI) and develop a more effective growth strategy for the business.
5. Digital funnel metrics (visitors, leads, and customers)
It is used to convert digital traffic-into leads-finaly into customer
6. Conversion rates
Is a way in which a percentage of visitors who become leads and leads who become customers is calcluated. These numbers are critical because they can help to determine where to focus the efforts and get themaximum of marketing and sales.
7. Quota Attainment
Quota attainment is exactly what it sounds like: the percentage of deals (either by number or by revenue) a sales rep has closed in relation to their set quota for a given time period.
8. Average Profit Margin
Average profit margin measures, in essence, the pulse of the business. This KPI ultimately tells you how your company is doing.
9. Average Revenue Per User / Average Revenue Per Account
Average revenue per user (ARPU) or average revenue per account (ARPA) refers to the amount of money that a company brings in per subscriber, user, or account in a particular time period.
10. Break Even Point
The business’ break even point is the quantity of product it must sell so that the total revenue equals your total costs. Break even point is crucial because it serves as the minimum goal the business should try to achieve in order to not lose money during a specific time period.
