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UberAnalyticsExercise
Introduction
This document demonstrates my approach analyzing the dataset in the Uber Analytics Exercise.
Data Exploration
The data could be viewed as a funnel from Eyeballs(demand emerges) to Completed Trips, while Zeros
result in potential drop-outs(turn o the App). Visualziation helps us discover the pattern of these
metrics easier than contingency table.
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It looks like there is a positive correlation between demand(Eyeballs) and supply(Unique Drivers) based
on the plot. So we will further calculate the correlation coecient. A correlation coecient of 0.79
suggests strong positive relationship between supply and demand.
cor(uberNum$Eyeballs,uberNum$Unique.Drivers)
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##[1]0.7895826
Exploration by Category
After examining numeric variables solely, we will analyze them by categorical groups, that, in this case,
are Date and Time.
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Conclusion
The most important target is to maximize Completed Trips.
Nice balance between Eyeballs and Unique Drivers results in more requests, thus results in
more Completed Trips.
Zeros result in less requests, hence result in fewer Completed Trips.
Most of the Completed Trips come from Popular Hours(from 5pm on Friday to 3am on Sunday).
Yet, there are still plenty of business opportunities lost in these hours.
Incentive plans or marketing campaigns shall focus on the how to reduce Zeros during Popular
Hours.
Dynamic pricing on riders might decrease Eyeballs during Popular Hours.
Therefore, if I were about to make a suggestion, I will go for a dynamic pricing on drivers
proportion of revenue share, rather than on riders.
The denition of Popular Hours should be considered more thoroughly besides considering Date
and Time only. Say, adding dimensions including national holidays, seasons, and climate etc. into
the denition of Popular Hours. The more precise Uber can predict popularity, the more
Completed Trips can be accomplished.
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