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When the Numbers Don’t Add Up!

Problem Statement:

With 30,000 drivers registered on Uber and 25,000 on Ola, and these being the only ride-hailing platforms in the city, what is the total number of drivers? Options: 25k
40k
55k
60k
Answer: 40K

Solution:

The total registrations across Uber and Ola might suggest there are 55,000 drivers (30,000 + 25,000). However, many drivers register on both platforms to maximize their earnings, so the actual number of unique drivers is likely lower, around 40,000 in the real practical scenarios.

Understanding metrics beyond just registration counts is crucial. Knowing secondary metrics, like the average number of hours available per day per driver, helps companies get a realistic sense of driver availability and maximize fleet efficiency.

Lookalike Business Models:

Restaurants on Delivery Platforms: Restaurants often list themselves on multiple delivery apps like Swiggy and Zomato, so the total unique restaurant count is less than the number of listings across platforms. Airlines on Travel Portals: Airlines partner with multiple travel websites to reach more customers. Even though they appear on various sites, the actual fleet size and flight availability remain constant. Delivery Partners on Food Delivery Platforms: Delivery agents work with multiple food apps, like Swiggy and Zepto, creating overlap that can make it hard to estimate the actual number of unique delivery partners. Hotels on Booking Platforms: Hotels list on platforms like MakeMyTrip, Booking.com, and Agoda. Although they appear on multiple platforms, the number of rooms remains fixed. Freelancers on Multiple Job Portals: Many freelancers list themselves on platforms like Upwork and Fiverr, yet the actual number of freelancers is lower than the combined user counts of these sites.

Takeaway

When interpreting business metrics, relying only on high-level numbers, like total registrations, can lead to skewed projections. Secondary metrics, like average availability or overlap, provide deeper insight, helping businesses make accurate decisions and preventing misleading conclusions from surface-level numbers.

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