Interviewer view · keep this screen to yourself
A marketplace and a freemium app
You run the case. Read the prompt, answer questions from the notes below, and share data only when the candidate asks for it or gets stuck. Score at the end.
Case timer
00:00
1. Read the prompt aloud
Read it slowly, then pause. Let the candidate ask questions before they structure.
A fictional travel marketplace in Southeast Asia processes gross booking value (GBV, the total value of trips booked) of USD 2,000 million a year and keeps a take rate of 12 percent. It also runs a freemium trip-planning app with 10 million free users, of whom 4 percent pay USD 5 a month for the paid plan. What yearly revenue does each part earn, and what is one point of take rate or conversion worth?
2. Answers to clarifying questions
This case has no scripted clarifying answers. Answer from the prompt, and say "assume what you think is reasonable" if the prompt does not cover it.
3. A model structure
Compare the candidate's structure with this one. A different split can be just as good if it is clean and fits the problem.
- Revenue by model
- Marketplace = GBV x take rate
- Freemium = free users x conversion x price x 12
4. The working, step by step
Each step shows how a strong candidate works it out. Share a new fact from it only when the candidate asks or is stuck, and let them do the math: the result in the dark box is what they should reach.
Step 1: Marketplace revenue
What a strong candidate does: 12 percent of USD 2,000 million.
Marketplace revenue (USD millions): 2,000 × 0.12 = 240
Step 2: Paying users
What a strong candidate does: 4 percent of 10 million.
Paying users: 10,000,000 × 0.04 = 400,000
Step 3: App revenue
What a strong candidate does: 400,000 users at USD 5 a month for 12 months.
App revenue per year (USD): 400,000 × 5 × 12 = 24,000,000
Step 4: One point of take rate
What a strong candidate does: 1 percent of USD 2,000 million.
Value of 1 point of take rate (USD millions): 2,000 × 0.01 = 20
Step 5: One point of conversion
What a strong candidate does: 1 percent of 10 million users at USD 60 a year.
Value of 1 point of conversion (USD millions): 10,000,000 × 0.01 × 60 ÷ 1,000,000 = 6
The recommendation to listen for
At the end, say: "The CEO walks in. What is your recommendation?"
The company should focus on the marketplace, because it earns USD 240 million a year against USD 24 million from the app. First, one point of take rate is worth USD 20 million, while one point of app conversion is worth USD 6 million. Second, this means small gains on the USD 2,000 million of bookings move the total most. The risk is that raising the 12 percent take rate pushes buyers and sellers to rivals. As a next step, test a small take rate change in one market and track bookings.
Score the candidate
Score each criterion from 1 to 5. A 2 or a 4 sits between the descriptions.
This case has no exhibit. Score Exhibit reading on how the candidate used the data you gave them: did they pick out the number that matters and say what it means?
Total
0 out of 25
Score all five criteria to see the band and the feedback template.