## We will be using for reference the case in the coursepack “Ride Hailing Services: Forecasting Uber’s Growth”.

### finance

##### Description

The purpose of the Assignment is to forecast the revenue growth for a ride-hailing company like Uber.

We will be using for reference the case in the coursepack “Ride Hailing Services: Forecasting Uber’s Growth”.  This case presents a model, the Bass Model, that could be used to forecast Uber’s growth in number of drivers/riders and starting from there, to forecast the growth in its revenues.

All the necessary instructions, data and guidance are in the paper case and the spreadsheet attached.

Question 1

In the workbook labelled “Market Potential”, compute the total market potential (m) under the assumptions therein set forth and restated for your convenience below:

The smallest city size for a profitable operation is 50,000 (for a total population in such cities see Exhibit 7 of the paper case “Ride Hailing Services: Forecasting Uber’s Growth”)

The market potential in NYC is 80,000 drivers for a population of 8,622,698

The proportion of this number of drivers to population is the same across the US

The current ratio of Uber drivers in the US to the rest of the world is 1:3. We assume it's going to grow to 1:4 (meaning the number applicable for US should be multiplied 5 times to estimate the global number).

[Enter your answer in millions. For example, if your answer is 1,580,000, then you would enter 1.58]

Question 2

b) In the workbook labelled “Forecast using analogy”, use the coefficients of p (individual force) and q (social force) given for the analogous product “Electric Vehicles” found in the Exhibit 9 “Ride Hailing Services: Forecasting Uber’s Growth”. Use the global market potential (m) you calculated in part a). What is the forecast for the cumulative number of Uber drivers in 2021 (annual number)?

[Enter your answer in thousands. For example, if your answer is 8,000,000, then you would enter 8000]