Here’s How Uber Uses Data Science

Uber is an American mobility-as-a-service provider that currently operates in 72 countries. Uber is also among the companies that use data and algorithms as a necessity for their business. So, if you want to know how Uber uses Data Science, this article is for you. In this article, I will introduce how Uber uses Data Science for its business.

Here’s How Uber Uses Data Science

Data and algorithms are necessities for Uber. Below are some ways how Uber uses Data Science for its business.

Analyzing Demand and Supply

In Uber’s case, demand is the number of people willing to ride on Uber during a given time, and supply is the number of drivers available to pick up and drop off a rider during a given time.

Uber analyzes the demand for rides in real-time to ensure that all potential riders are dropped off at their desired location. To do this, Uber analyzes demand and supply based on:

  1. crowded events in the city
  2. crowded locations on a particular day
  3. heavy traffic areas during unusual weather conditions

So, to maximize profits, Uber analyzes demand and supply in real-time to make their drivers available at the most demanded locations.

Dynamic Pricing

Every time you travel on Uber, your data is saved in their database. Uber has so much information today about the price of a ride:

  1. for a given distance
  2. according to weather conditions
  3. during a particular time

With the data on the price of the rides, it has been possible for Uber to use Machine Learning algorithms for dynamic pricing. It helps Uber to calculate the price of a ride for any location in no time.

Uber also implements the concept of surge pricing to calculate the price of a ride. It means while calculating the price of a ride, the demand for Uber rides in that location is also taken into account. So, when the demand for Uber rides is high with the limited number of drivers in the area, the riders need to pay more.

Improving the User Experience of the Uber App

The Uber Rider App customizes its screen according to the user’s data. The home screen, the order of rides, notifications and alerts are different for every Uber rider.

From your screen time on Uber’s app to your most preferred ride and location, everything is saved by Uber on their database. It helps Uber improve the overall user experience of the Uber App to get more demand for rides from the user.

You can learn more about how Uber uses data to improve the user experience of its rider app from here.

Summary

So here are some of the ways how Uber uses Data Science for its business:

  1. Uber analyzes demand and supply in real-time to make the drivers available at the most demanded locations.
  2. With the data on the price of the rides, it has been possible for Uber to use Machine Learning algorithms for dynamic pricing.
  3. Improve the overall user experience of the Uber App to get more demand for rides from the user.

I hope you liked this article on how Uber uses Data Science for its business. Feel free to ask valuable questions in the comments section below.

Aman Kharwal
Aman Kharwal

Coder with the ♥️ of a Writer || Data Scientist | Solopreneur | Founder

Articles: 1334

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