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How does Uber use forecasting to plan their operations?
in Data Science & Statistics by Diamond (75,918 points) | 56 views

1 Answer

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A critical element of the Uber platform, marketplace forecasting enables them to predict user supply and demand in a spatio-temporal fine granular fashion to direct driver-partners to high demand areas before they arise, thereby increasing their trip count and earnings. Spatio-temporal forecasts are still an open research area.

  • Hardware capacity planning: Hardware under-provisioning may lead to outages that can erode user trust, but over-provisioning can be very costly. Forecasting can help find the sweet spot: not too many and not too few.
  • Marketing: It is critical to understand the marginal effectiveness of different media channels while controlling for trends, seasonality, and other dynamics (e.g., competition or pricing). We leverage advanced forecasting methodologies to help us build more robust estimates and to enable us to make data-driven marketing decisions at scale.

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