What is unit economics for marketplace (Uber, Careem, Swvl) kind of companies, What are key Product Management Metrics involved.

what is unit economics for marketplace kind of companies?

Unit economics refer to the financial performance of each individual unit of a company's product or service. In the case of a ride-hailing company like Uber, the unit of measurement might be each ride or each trip. The unit economics of a ride-hailing company would generally include the cost of acquiring a customer, the cost of providing the ride, and the revenue generated from the ride.

To understand the unit economics of a ride-hailing company, it's important to consider the various costs involved in providing the service. These costs may include the cost of acquiring and retaining drivers, the cost of maintaining and repairing vehicles, the cost of marketing and advertising to attract new riders, and the cost of developing and maintaining the technology platform.

The revenue generated from each ride would typically be calculated by subtracting any discounts or promotions from the total fare paid by the rider. The profit margin for each ride, or the difference between the revenue generated and the total cost of providing the ride, would then be calculated.

To have positive unit economics, the profit margin for each ride must be positive, meaning that the revenue generated from each ride is greater than the total cost of providing the ride. If the profit margin is negative, the company is losing money on each ride and may not be financially viable in the long term.

It's worth noting that the unit economics of a ride-hailing company can vary significantly depending on a variety of factors, including the local market conditions, competition, and the specific business model and pricing strategy of the company.

what are all key metrics which should be taken in account for product management? 

Product management involves the strategic planning, development, and execution of a company's products. To effectively manage a product, it's important to track and measure various key metrics that can provide insight into the product's performance and help guide decision-making. Some key metrics that product managers may consider include:

1. Customer satisfaction: Measuring customer satisfaction can provide valuable insight into the overall quality and value of a product. This can be done through surveys, focus groups, or other research methods.
2. User engagement: Tracking user engagement can help product managers understand how actively users are interacting with the product and identify any potential issues or areas for improvement.
3. Retention rate: The retention rate measures the percentage of users who continue to use a product over time. A high retention rate can indicate that a product is meeting the needs of its users and providing value.
4. Conversion rate: The conversion rate is the percentage of users who take a desired action, such as making a purchase or signing up for a service. Tracking the conversion rate can help product managers understand how effectively the product is meeting its goals.
5. Usage frequency: Measuring the frequency with which users interact with a product can provide insight into the level of demand for the product and help identify any potential issues with usage.
6. Revenue: Tracking revenue can help product managers understand the financial performance of the product and identify opportunities for growth.
7. Cost of customer acquisition: The cost of customer acquisition refers to the expenses associated with acquiring new customers, including marketing and sales efforts. Tracking this metric can help product managers understand the efficiency of their customer acquisition efforts.

These are just a few examples of key metrics that product managers may consider. The specific metrics that are most important will depend on the nature of the product and the goals of the product team.

Yes, there are many other metrics that product managers may consider when tracking the performance of a product. Some additional examples include:

1. Net promoter score (NPS): NPS is a measure of customer loyalty and satisfaction. It is calculated by asking customers to rate the likelihood that they would recommend the product to a friend or colleague on a scale of 0 to 10.
2. Customer lifetime value (CLV): CLV is a measure of the total value that a customer is expected to generate for a business over the course of their relationship with the company.
3. Funnel metrics: Funnel metrics track the progress of users through various stages of the customer journey, such as awareness, consideration, and purchase. Tracking these metrics can help product managers understand where users are dropping off and identify opportunities to improve the customer experience.
4. Usage data: Measuring usage data, such as the number of times a product is used or the length of time that users spend interacting with the product, can provide insight into the value that users are getting from the product.
5. Product adoption rate: The product adoption rate measures the percentage of the target market that is using the product. Tracking this metric can help product managers understand the level of demand for the product and identify opportunities for growth.
6. Customer acquisition cost (CAC): CAC is a measure of the cost of acquiring each new customer. Tracking CAC can help product managers understand the efficiency of their customer acquisition efforts and identify opportunities to reduce costs.
7. Churn rate: The churn rate is the percentage of customers who stop using a product or service over a given time period. Tracking churn can help product managers understand why customers are leaving and identify opportunities to improve retention.

Again, the specific metrics that are most important will depend on the nature of the product and the goals of the product team.

There are many other metrics that product managers may consider when tracking the performance of a product, depending on the specific goals and objectives of the product team. Here are a few additional examples:

1. Usage depth: Usage depth measures the extent to which users are engaging with a product. For example, a software product with a high usage depth might be used frequently and for a long period of time, while a product with a low usage depth might be used infrequently or for a short period of time.
2. Customer feedback: Gathering customer feedback through reviews, surveys, or other methods can provide valuable insights into the needs and preferences of users and help product managers identify areas for improvement.
3. Market share: Market share is a measure of the percentage of total sales in a given market that are captured by a particular product. Tracking market share can help product managers understand the competitiveness of their product in the market.
4. Market penetration: Market penetration measures the extent to which a product is adopted by its target market. Tracking market penetration can help product managers understand the level of demand for their product and identify opportunities for growth.
5. Product defects: Tracking the number and severity of defects in a product can help product managers identify and address quality issues.
6. Time to market: Time to market is a measure of the length of time it takes for a product to be developed and brought to market. Reducing time to market can be important for staying competitive and capturing market share.
7. Return on investment (ROI): ROI is a measure of the profitability of an investment. For a product, ROI can be calculated by dividing the product's total revenue by its total cost. Tracking ROI can help product managers understand the financial performance of the product and identify opportunities for improvement.

Again, the specific metrics that are most important will depend on the nature of the product and the goals of the product team.

Bonus: how nash equilibrium can benefit managing marketplace liquidity and pricing strategy ?

In economics, the Nash equilibrium is a concept that describes a state in which all participants in a game or market are making the best decision they can given the decisions of the other participants. In a market with a Nash equilibrium, no participant can benefit by changing their own decision, given the decisions of the other participants.

In the context of a marketplace, the Nash equilibrium can be used to help manage liquidity and pricing strategy. For example, consider a marketplace that connects buyers and sellers of a particular product. If the demand for the product is high and the supply is low, the sellers may be able to command higher prices for the product, which can benefit their own profits. However, if the sellers all try to charge high prices at the same time, this could lead to a reduction in demand, as buyers may choose to purchase from other sellers or delay their purchases until prices come down.

In this situation, the Nash equilibrium would be a state in which the sellers are charging a price that is high enough to cover their costs and generate a profit, but not so high that it leads to a reduction in demand. The buyers, in turn, would be making the decision to purchase the product at the price offered by the sellers, given the availability of the product and their own budget constraints.

By understanding the Nash equilibrium, product managers can identify strategies that can help optimize liquidity and pricing in the marketplace. For example, they may be able to use data on supply and demand to adjust pricing in a way that helps balance the interests of buyers and sellers, while also maximizing profits for the company.