Driver Lifetime Value Assessment

Requirements Clarification & Assessment

1. Understanding the Objective:

   • Determine the lifetime value (LTV) of a driver, which is a metric used to assess the total revenue a company expects to earn from a driver over their entire engagement period.

2. Key Components to Consider:

   • Revenue Per Driver: Average income generated by a driver over a specific period.
   • Cost Per Driver: Expenses directly associated with the driver, such as bonuses or technology fees.
   • Driver Retention Period: Average duration a driver remains active on the platform.
   • Discount Rate: Used to calculate the present value of future earnings.

3. Data Requirements:

   • Historical data on driver revenue and retention.
   • Cost data associated with driver acquisition and retention.
   • Market trends and external factors influencing driver activity.

4. Business Context:

   • Understand the company's business model and how drivers contribute to overall revenue.
   • Identify the company's goals, such as improving driver retention or optimizing acquisition costs.

5. Segmentation Needs:

   • Consider segmenting drivers based on factors like location, tenure, or performance to provide more granular insights.