Algorithm for Lyft Line

Requirements Clarification & Assessment

1. Understand Lyft Line Service

   • Lyft Line is a shared ride service where multiple riders headed in similar directions are matched to a single ride.
   • The primary goal is to optimize trip efficiency while minimizing inconvenience to riders.

2. Objective of the New Algorithm

   • Reduce waiting and travel time for riders.
   • Increase the number of shared rides.
   • Enhance overall revenue from shared rides.
   • Minimize loss miles for drivers.

3. Key Metrics for Evaluation

   • Trip Inefficiency: Difference in distance traveled using Lyft Line versus a direct ride.
   • Rider Waiting Time: Time from booking to pickup.
   • Travel Time: Total time from pickup to drop-off.
   • Cost Efficiency: Revenue per ride and cost incurred.
   • User Satisfaction: Rider and driver feedback.

4. Constraints and Considerations

   • Potential cannibalization of individual rides.
   • Network effects that may influence results.
   • Need for robust testing frameworks like A/B testing or synthetic control methods.