Interviewer view · keep this screen to yourself

Contribution per ride for a ride-hailing app in Egypt

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

Target length:

1. Read the prompt aloud

Read it slowly, then pause. Let the candidate ask questions before they structure.

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?

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.

Monthly profit = rides x contribution per ride minus fixed costs
- Revenue per ride = fare x take rate
- Contribution per ride = revenue minus incentives, payment, and support
- Break-even rides = fixed costs / contribution per ride

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: Revenue per ride
What a strong candidate does: 20 percent of EGP 150.
Revenue per ride (EGP): 150 × 0.2 = 30
Step 2: Contribution per ride
What a strong candidate does: Subtract incentives, payment and insurance, and support.
Contribution per ride (EGP): 30 - 8 - 4 - 3 = 15
Step 3: Monthly contribution
What a strong candidate does: 2 million rides at EGP 15.
Monthly contribution (EGP millions): 2 × 15 = 30
Step 4: Monthly profit
What a strong candidate does: Subtract EGP 25 million of fixed costs.
Monthly profit (EGP millions): 30 - 25 = 5
Step 5: Break-even rides
What a strong candidate does: Fixed costs divided by contribution per ride.
Break-even rides (millions a month): 25 ÷ 15 = 1.67

The recommendation to listen for

At the end, say: "The CEO walks in. What is your recommendation?"

The app should cut rider and driver incentives carefully, because each ride contributes only EGP 15, so it earns EGP 5 million a month and breaks even at about 1.67 million rides. First, incentives of EGP 8 per ride are the largest variable cost after the driver's share. Second, cutting them by EGP 3 per ride would raise monthly profit by EGP 6 million, more than double. The risk is losing riders or drivers to a competitor that keeps paying incentives. As a next step, test lower incentives in one district and track ride volumes.

Risks a strong answer names: A competitor price war would raise incentives; Fuel price rises may force higher driver earnings; Currency moves can raise the cost of technology bought in dollars.

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?

Structuring

1: No clear structure, or a memorized framework that does not fit the problem.
3: A sensible structure, but with some overlap, a gap, or no clear priority.
5: A structure built for this problem, with no overlap and no gaps, a stated hypothesis, and a clear first step.

Math

1: Frequent errors, no units, or needed heavy help to finish.
3: Right answers but slow or messy working, or one error caught late.
5: Accurate and clearly narrated, with units, a sense check, and what the number means.

Exhibit reading

1: Read the chart aloud without finding the number that matters.
3: Found the key number but gave only part of the so-what.
5: Pulled the right number quickly and said what it means for the case.

Synthesis

1: Summarized what was done, with no clear answer.
3: Gave an answer, but with weak reasons or no next step.
5: Answer first, then two or three reasons with numbers, the main risk, and next steps.

Communication

1: Hard to follow: long silences, no signposting.
3: Clear most of the time, with some rambling.
5: Calm and concise, signposted each step, and checked in with the interviewer.

Total

0 out of 25

Score all five criteria to see the band and the feedback template.