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Contribution per ride for a ride-hailing app in Egypt
The prompt
A ride-hailing app in Cairo has an average fare of EGP 150 and keeps a take rate of 20 percent. For each ride it pays EGP 8 in rider and driver incentives, EGP 4 in payment and insurance costs, and EGP 3 in support and other variable costs. It completes 2 million rides a month. Fixed costs for technology, marketing, and offices are EGP 25 million a month. What is the contribution per ride, the monthly profit, and the break-even number of rides?
Your interviewer will share data as you ask for it. Ask clarifying questions, state a hypothesis, then lay out your structure out loud before you calculate.
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