Lyft Business Metrics Calculation and Understanding Questions
Finance and operations-focused interview topic about calculating and interpreting core business metrics and KPIs for a platform-based business (e.g., ride-hailing). Covers definitions and formulas for metrics such as CAC, LTV, gross margin, contribution margin, revenue per user, driver utilization, and cost per ride; data sources (ride data, marketing spend, driver and rider activity); dashboard design; segmentation and cohort analysis; and using metrics to drive pricing, incentives, growth, and operational decisions.
MediumTechnical
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You need to allocate shared fixed costs (regional headcount, platform engineering) across per-ride economics for reporting to finance. Describe three allocation methods, pros/cons of each, and which you'd choose for driver-level profitability reporting.
MediumBehavioral
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Behavioral: Describe a time you disagreed with a growth recommendation because it hurt unit economics. Explain how you presented your analysis, the stakeholders involved, and the outcome. Use the STAR format and quantify where possible.
HardTechnical
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Construct a discounted cohort-based LTV model for riders where monthly retention = 0.85, average revenue per active rider per month = $20, gross margin = 30%, and discount rate (monthly) = 0.5%. Calculate the LTV and show the formula and steps.
MediumTechnical
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Write a SQL query to compute 7-day retention for rider cohorts. Schema:Return: signup_date, cohort_size, day_7_retained_count, day_7_retention_rate. Define 7-day retained as having at least one ride in days 1–7 after signup (inclusive).
users(user_id, signup_date date)
rides(ride_id, rider_id, started_at timestamp)EasyTechnical
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Describe gross margin in the context of a ride-hailing business. Give the formula for gross margin at the company level and per-ride level. Explain what cost items you would include (e.g., driver payouts, payment processing fees, platform-level costs) and which items you would treat as operating expenses instead.
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