Interviewer view · keep this screen to yourself
Why drivers go where the riders are, and what it costs to fight that
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.
Illustrative numbers, fictional apps. In a city in Singapore, drivers on the larger ride app, App B, carry a passenger for 45 minutes of each hour online, because riders are everywhere. Drivers on the smaller App A carry a passenger for only 30 minutes of each hour. On both apps a driver keeps SGD 0.80 for each minute with a passenger. How much more does a driver earn per hour on App B, and what would App A have to spend in bonuses to match it for 2,000 drivers working 40 hours a week?
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.
- Driver earnings per hour = busy minutes per hour x earnings per busy minute
- Compare the two apps
- Cost to match = gap per hour x drivers x hours
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: App A earnings
What a strong candidate does: 30 busy minutes at SGD 0.80.
App A driver earnings (SGD per hour): 30 × 0.8 = 24
Step 2: App B earnings
What a strong candidate does: 45 busy minutes at SGD 0.80.
App B driver earnings (SGD per hour): 45 × 0.8 = 36
Step 3: The gap
What a strong candidate does: The extra a driver earns on App B every hour.
Earnings gap (SGD per hour): 45 × 0.8 - 30 × 0.8 = 12
Step 4: Weekly cost to match
What a strong candidate does: SGD 12 an hour, for 2,000 drivers, for 40 hours.
Bonus cost (SGD per week): 12 × 2,000 × 40 = 960,000
Step 5: Yearly cost to match
What a strong candidate does: Fifty-two weeks.
Bonus cost (SGD per year): 960,000 × 52 = 49,920,000
The recommendation to listen for
At the end, say: "The CEO walks in. What is your recommendation?"
A driver earns SGD 36 an hour on the bigger app against SGD 24 on the smaller one, only because the bigger app keeps drivers busier. To match it, App A would have to pay about SGD 50 million a year in bonuses for just 2,000 drivers, and the moment it stops, drivers drift back. That is the economics of a network effect: the leader gets the same result for free that the follower must buy. App A's better options are to win one district or one niche where it can be the denser network, or to combine with a rival.
Risks a strong answer names: If drivers run both apps at once, the gap shrinks, because App A can borrow App B's drivers; Network effects are local: winning one city says little about the next one.
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.