Be Cautious of Rising Averages
In 2014, while working at TaxiForSure, I oversaw the launch of operations in Chandigarh. With most rides pre-booked and a limited fleet, bookings were manually allocated. Cabs were categorised into five segments based on incentives and work schedules.
A month after the launch, I tasked the team to increase the average rides per cab for two segments, (let’s say A & B). Two weeks later, they reported a 25% improvement. Impressed with the results, I requested further data to present at the monthly business review.
While Compiling the data, I noticed minimal to nil growth in the other segments (despite 10% overall growth), while A & B jumped 25%. Intrigued, I investigated further.
I discovered the team had silently shifted top performers from the other segments into A & B while moving under-performers out. Although they hit the target, it wasn’t the performance boost I expected
Now, whenever I see a specific segment’s average outpacing overall growth, I know it warrants a closer look to validate if any creative manipulation is at play.