Question: Andrew is a regular Uber customer. He usually rides Uber twice a week (assume a fare per ride of $5 and a gross margin for
Andrew is a regular Uber customer. He usually rides Uber twice a week (assume a fare per ride of $5 and a gross margin for Uber of 80%). Assume that Andrew will ride Uber for five years (use 4 weeks per month and 48 weeks per year). Using month as the discount period and a monthly discount factor of 1%, what is Andrew's CLV to Uber? a. $1,252.95 b. $1,470.56
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