Interview Question

Interview New York, NY

You own a burrito shop and you want to advertise in a fleet

  of 100 cabs in San Francisco. The ad will be seen only by the passenger(s). How much are you willing to pay per month.
Answer

Interview Answer

2 Answers

8

I went with a classic Customer Acquisition Cost approach. Estimated the number of cab rides per cab per day. An average cab ride of 15 minutes. A conversion rate of 1%. I used a margin of $3 per Burrito. And 1.5 passengers.

Interview Candidate on Sep 18, 2013
0

Assuming a 50% occupancy and an average of 15 minute ride, the at most the shop keeper will be willing to spend is $144.

CFY on Apr 27, 2015

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