Amazon Interview Question | Guesstimate
Question
What is the total number of Amazon deliveries done in Bangalore in a day?
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Answer ( 1 )
Population of Bangalore = 80 lac
Average number of number in 1 family = 4
Total number of families in Bangalore = 20 lac
Among these 20 lac families we will categories them in three categories Upper Middle class(15%), Middle class(35%), and below poverty line(50%).
Upper Middle class families = (20*15)/100 = 3 lac
Middle class families = (20*35)/100 = 7 lac
Below poverty line = (20*50)/100 = 10 lac
Now we suppose that Upper Middle class families receives 2 orders every day and Middle class families receives 1 order every other day, where as Below poverty line families tend to buy things offline.
Order UMC Families = 3 lac * 2 = 6 lac
Order MC Families = 7 lac*1/2 = 3.5 lac
Total number of orders delivered each day = 9.5 lac
As amazon will have to share these order share with other companies.
Total number of orders delivered by Amazon = 9.5 * (.60) =5.7 lacs
Assumptions:
A) Let us suppose the total population of Bangalore = 100 lakh
B) Let us suppose the population demographics are as follows –
1) Age 0 – 14 percent of the population is 5 % (5lakh population)
2) Age 14 – 40 percent of the population is 75% (75 lakh population).
3) Age 40 – 60 percent of the population is 15 % (15 lakh population)
4) Age greater than 60 percent of the population is 5% (5 lakh population)
C) The order placed by the individual on the basis of age demographics in case not festive season are –
1) Age 0 – 14: an average of 0 order placed per day (assuming their orders are also placed by their parents).
2) Age 14 – 40: an average of 4 orders placed per day.
3) Age 40 – 60: an average of 2 orders per day.
4) Age greater than 60 : an average 1 per day.
D) The order placed by the individual on the basis of age demographics in case festive season are –
1) Age 0 – 14: an average of 0 order placed per day (assuming their orders are also placed by their parents).
2) Age 14 – 40: an average of 10 orders placed per day.
3) Age 40 – 60: an average of 6 orders per day.
4) Age greater than 60 : an average 4 per day.
E) Knowing that amazon is competing Flipkart, grofers, myntra, Ajio etc. So, let’s assume the market share is 40%.
SOLUTION
Then, in that case, total order in a day in case day is not in the festive season is computed as –
Total orders per day = (0 x 5) + (75 x 4 ) + (15 x 2) + (5 x 1) = 300 + 30 + 5 = 335 lakh orders per day
Then the order share of amazon will be = 335 x (40/100) = 134 lakh orders per day
If the order placed on the days just before the festive season, then total orders per day are –
Total orders per day = (0 x 5) + (75 x 10) + (15 x 6) + (5 x 4) = 750 + 90 + 20 = 860 lakh per day
Then amazon share is = 860 x (40/100) = 344 lakh orders per day