Question: Hi i need help that will guide with what I have The key aspect of ride-hailing is upfront pricing, which works the following way. First,
Hi i need help that will guide with what I have
The key aspect of ride-hailing is upfront pricing, which works the following way. First, it predicts the price for a ride based on predicted distance and time. This price is what you see on the screen of the phone before ordering a ride. Second, if the metered price based on actual distance and time differs a lot from the predicted one, the upfront price switches to the metered price. 'A lot' means by more than 20%. For example, suppose you want to make a ride that upfront price predicts to cost 5 euros. If the metered price is between 4 and 6 euros - the rider pays 5 euros, otherwise the metered price.
We would like to improve the upfront pricing precision. Kindly analyze the data and identify top opportunities for that. Could you name the top one opportunity?
THE DATA SET IS VERY LARGE SO I COPIED THE FIRST 20 ROWS
Sample data SET in the table below
| order_id_new | order_try_id_new | calc_created | metered_price | upfront_price | distance | duration | gps_confidence | entered_by | b_state | dest_change_number | prediction_price_type | predicted_distance | predicted_duration | change_reason_pricing | ticket_id_new | device_token | rider_app_version | order_state | order_try_state | driver_app_version | driver_device_uid_new | device_name | eu_indicator | overpaid_ride_ticket | fraud_score |
| 22 | 22 | 2020-02-02 3:37:31 | 4.04 | 10 | 2839 | 700 | 1 | client | finished | 1 | upfront | 13384 | 1091 | 1376 | CI.4.17 | finished | finished | DA.4.37 | 1596 | Xiaomi Redmi 6 | 1 | 0 | -1383 | ||
| 618 | 618 | 2020-02-08 2:26:19 | 6.09 | 3.6 | 5698 | 493 | 1 | client | finished | 1 | upfront | 2286 | 360 | 2035 | CA.5.43 | finished | finished | DA.4.39 | 1578 | Samsung SM-G965F | 1 | 0 | |||
| 657 | 657 | 2020-02-08 11:50:35 | 4.32 | 3.5 | 4426 | 695 | 1 | client | finished | 1 | upfront | 4101 | 433 | 2222 | CA.5.43 | finished | finished | DA.4.37 | 951 | Samsung SM-A530F | 1 | 0 | -166 | ||
| 313 | 313 | 2020-02-05 6:34:54 | 72871.72 | 49748 | 1400 | 0 | client | finished | 2 | upfront_destination_changed | 3017 | 600 | client_destination_changed | 1788 | CA.5.23 | finished | finished | DA.4.37 | 1587 | TECNO-Y6 | 0 | 1 | |||
| 1176 | 1176 | 2020-02-13 17:31:24 | 20032.5 | 19500 | 10273 | 5067 | 1 | client | finished | 1 | upfront | 14236 | 2778 | 2710 | CA.5.04 | finished | finished | DA.4.37 | 433 | Itel W5504 | 0 | 0 | |||
| 1209 | 1209 | 2020-02-14 1:27:01 | 6.11 | 6.3 | 4924 | 513 | 1 | client | finished | 1 | upfront | 4882 | 562 | 2732 | CA.5.04 | finished | finished | DA.4.39 | 1591 | HUAWEI WAS-LX1 | 1 | 0 | |||
| 761 | 761 | 2020-02-09 6:51:20 | 20753.2 | 10500 | 10459 | 1874 | 1 | client | finished | 1 | upfront | 4892 | 698 | 2173 | CI.4.17 | finished | finished | DA.4.19 | 982 | TECNO MOBILE LIMITED TECNO KA7O | 0 | 0 | |||
| 1662 | 1662 | 2020-02-17 18:24:45 | 2.61 | 6.5 | 2020 | 412 | 1 | client | finished | 1 | upfront | 8545 | 888 | 3229 | CI.4.18 | finished | finished | DA.4.37 | 1701 | Samsung SM-N950F | 1 | 0 | -2350 | ||
| 1904 | 1904 | 2020-02-20 16:38:34 | 13600.5 | 9540 | 1917 | 1 | client | finished | 1 | prediction | 11018 | 1914 | 3557 | CA.5.40 | finished | finished | DA.4.31 | 605 | TECNO K7 | 0 | 0 | ||||
| 1999 | 1999 | 2020-02-21 11:02:38 | 4.14 | 2.5 | 3845 | 720 | 1 | client | finished | 1 | upfront | 1883 | 298 | 3631 | CI.4.18 | finished | finished | DA.4.39 | 1960 | Samsung SM-G930F | 1 | 0 | -5181 | ||
| 2366 | 2366 | 2020-02-24 8:51:31 | 8.04 | 8.1 | 9977 | 1257 | 1 | client | finished | 1 | upfront | 9891 | 1282 | 4157 | CA.5.44 | finished | finished | DA.4.39 | 1339 | HUAWEI BLA-L29 | 1 | 0 | -652 | ||
| 2803 | 2803 | 2020-02-29 1:44:16 | 18.8 | 17107 | 1552 | 1 | client | finished | 2 | upfront_destination_changed | 11054 | 962 | client_destination_changed | 4608 | CI.4.17 | finished | finished | DA.4.37 | 1695 | LENOVO Lenovo TB-7304F | 1 | 0 | -100 | ||
| 3313 | 3313 | 2020-03-06 0:29:03 | 31.23 | 54757 | 6581 | 1 | driver | finished | 3 | upfront_destination_changed | 13878 | 1381 | driver_destination_changed | 342 | CI.4.19 | finished | finished | DA.4.39 | 1459 | Samsung SM-G950F | 1 | 0 | -58 | ||
| 3299 | 3299 | 2020-03-05 18:52:48 | 7.65 | 6.3 | 13355 | 1335 | 1 | client | finished | 1 | upfront | 11823 | 888 | 282 | CA.5.32 | finished | finished | DI.3.37 | 214 | iPhone9,3 | 1 | 0 | -44 | ||
| 3675 | 3675 | 2020-03-09 10:50:57 | 8.53 | 11456 | 1205 | 1 | driver | finished | 2 | upfront_destination_changed | 11482 | 1179 | driver_destination_changed | 700 | CI.4.19 | finished | finished | DA.4.42 | 629 | Samsung SM-J610FN | 1 | 0 | -498 | ||
| 3638 | 3638 | 2020-03-08 21:01:19 | 13643.28 | 10365 | 1533 | 1 | client | finished | 1 | prediction | 9088 | 1175 | 736 | CI.4.19 | finished | finished | DA.4.39 | 1968 | TECNO MOBILE LIMITED TECNO CC7 | 0 | 0 | ||||
| 3797 | 3797 | 2020-03-10 16:32:01 | 8.49 | 8.7 | 9276 | 1555 | 1 | client | finished | 1 | upfront | 8781 | 1733 | 854 | CA.5.46 | finished | finished | DA.4.42 | 1889 | Samsung SM-J730F | 1 | 0 | |||
| 3406 | 3406 | 2020-03-06 20:24:49 | 4.6 | 4.5 | 5278 | 662 | 1 | client | finished | 1 | upfront | 5632 | 546 | 397 | CA.5.46 | finished | finished | DA.4.42 | 1392 | Samsung SM-A500FU | 1 | 0 | |||
| 73 | 73 | 2020-02-02 14:46:22 | 15.67 | 22396 | 2237 | 1 | client | finished | 2 | upfront_destination_changed | 9713 | 802 | client_destination_changed | 1436 | CA.5.40 | finished | finished | DA.4.37 | 2110 | Samsung SM-G965F | 1 | 0 | -160 |
Variables in the file:
order_id_new, order_try_id_new - id of an order
calc_created- time when the order was created
metered_price, distance, duration- actual price, distance and duration of a ride
upfront_price- promised to the rider price, based on predicted duration (predicted_duration) and distance (predicted_distance)
distance - ride distance
duration - ride duration
gps_confidence- indicator for good GPS connection (1 - good one, 0 - bad one)
entered_by- who entered the address
b_state- state of a ride (finished implies that the ride was actually done)
dest_change_number- number of destination changes by a rider and a driver. It includes the original input of the destination by a rider. That is why the minimum value of it is 1
predicted distance - predicted duration of a ride based on the pickup and dropoff points entered by the rider requesting a car
predicted duration - predicted duration of a ride based on the pickup and dropoff points entered by the rider requesting a car
prediction_price_type- internal variable for the type of prediction:
upfront, prediction - prediction happened before the ride
upfront_destination_changed - prediction happened after rider changed destination during the ride
change_reason_pricing - indicates whose action triggered a change in the price prediction. If it is empty, it means that either nobody changed the destination or that the change has not affected the predicted price
ticket_id_new - id for customer support ticket
device_token, device_token_new - id for a device_token (empty for all the fields)
rider_app_version - app version of rider phone
driver_app_version- app version of driver phone
driver_device_uid_new - id for UID of a phone device
device_name- the name of the phone
eu_indicator- whether a ride happens in EU
overpaid_ride_ticket- indicator for a rider complaining about the overpaid ride
fraud_score- fraud score of a rider. The higher it is the more likely the rider will cheat.
Part II: Business Research
Please create an assessment for food delivery (courier delivery of food from restaurants) launch in a city of your choice. The output should be a spreadsheet including the following:
A top-down estimation of market size
Unit economics with profitability per order
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