How to estimate the number of taxis in Shanghai City, given the population of 30 million

Market sizing
New answer on Nov 12, 2020
4 Answers
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Youjie Huang asked on Nov 11, 2020

Many thanks!

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Adi
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replied on Nov 11, 2020
Accenture, Deloitte | Precision Case Prep | Experienced Interviewer & Career Coach | 15 years professional experience

Hey there, please have a look at below threads for inspiration. Similar question has been solved before in the forum.

  • https://www.preplounge.com/en/consulting-forum/how-to-estimate-the-number-of-taxis-in-koeln-889
  • https://www.preplounge.com/en/consulting-forum/night-50-and-daytime-50-6396
  • https://www.preplounge.com/en/consulting-forum/the-number-of-taxis-operating-per-day-in-dubai-1288
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Youjie Huang on Nov 11, 2020

Thank you, Adi

Jasper
Expert
replied on Nov 11, 2020
Expert Financial Services | ex-FinTech Unicorn Manager | 250+ real interviews | 14y+ int work exp | ESCP Business School

Dear Youjie,

very classy brain teaser / short case teaser ;-)

Like every case it is not about to giving straight the "right" answer. The interviewer wants to see how you structure this little challenge. I.e. which questions and assumptions are you choosing in order to develop step by step a reasonable answer.

E.g.: You could estimate
--> the # of households in shanghai based on the population
--> the # of cars per household and therewith the # of cars in shanghai
--> % of taxis compared to all cars in the city, based on estimation or with a calculation which role taxis play in the mobility infrastructure in the city

Just an example, there is no right and wrong how to tackle this, but there should be a certain logic behind your thought structure ;-)

Hope it helps! Best - Jasper

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Youjie Huang on Nov 11, 2020

Thank you so much, Jasper

Clara
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replied on Nov 12, 2020
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut
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Ian
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replied on Nov 11, 2020
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

Hi Youjie,

I've seen a few posts from you now on market sizing.

I think you're a bit too focused on "the right answer" and not on how to think about market sizing.

Remember, the point of market sizing is to figure out, does the candidate exhibit the ability to:

  • Think in a structured way
  • Break down a problem by segmenting into logical pieces (i.e. directly positively/negatively correlated with the estimation)
  • Make reasonable assumptions
  • Communicate clearly and effectively

Your previous Q&As here: https://www.preplounge.com/en/consulting-forum/how-to-estimate-the-number-of-taxis-outside-delhi-airport-8464

And here: https://www.preplounge.com/en/consulting-forum/how-to-estimate-the-number-of-take-offs-in-the-heathrow-airport-each-day-8459

Are not going to help you unless you truly understand the point of what you're doing!

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Adi gave the best answer

Adi

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Accenture, Deloitte | Precision Case Prep | Experienced Interviewer & Career Coach | 15 years professional experience
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