Optimal pricing strategy for a Ride Hailing Service
I was tasked with proposing the highest profit yielding pricing strategy for a new Ride Hailing Service based on data from similar services in the area. I proposed 3 distinct pricing strategies and used simulation methods to explore the optimal parameters for each strategy, and then comparing the yield of each, identified the optimal strategy. I used a logistic regression model for the data to estimate the probability that a given pay rate for a ride request would be accepted. Of the 3 methods, a fixed rate of pay for every ride around $25 proved to be the optimal strategy, with both of the more complex strategies converging to this solution as well.
The repository for this project includes the final report, as well as all of my code and data analysis. This project demonstrates well my thought process and expertise when tackling abstract end-to-end projects.
- Length: 10 pages
- Report: The optimal pricing strategy for a Ride Hailing Service
- Code language: Python
- Code: Repository