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Design a surge pricing data pipeline

PremiumData pipelineMedium

  • Geospatial indexing
  • H3 cells
  • Supply and demand

Quick answer

This data pipeline interview question asks you to design a surge pricing data pipeline. Aim for a design that moves data from sources to consumers reliably and on time, then explain ingestion, processing, storage and trade-offs. Interviewers want to see how you handle volume, late or bad data and failures along the way.

The problem

Design a surge pricing data pipeline for a ride-hailing app like Uber: it turns driver location pings and rider requests into supply and demand per small map area every minute, and serves a price multiplier at quote time. The hard parts are freshness, stable prices and lookups at 100,000 quotes per second.

When demand beats supply in an area, a higher multiplier brings drivers in and evens out demand. Prices that jump around, or lag behind reality, both cost trips.

What must a surge pricing data pipeline do?

  • Compute multipliers: Recompute every map cell's multiplier every minute with the rule above.
  • Serve quotes: Return the multiplier for a pickup location in a few milliseconds.
3 more requirementsUnlock to see all

How well must it do it?

  • Freshness: A change in supply or demand starts to move the multiplier within 2 minutes; the change limit then sets how fast it climbs.
  • Lookup latency: p99 under 10 ms per multiplier lookup.
3 more requirementsUnlock to see all

What scale should you design for?

Use these numbers in your estimates.

The scale numbers unlock with this questionUnlock

Key concepts

  • Geospatial indexing
  • H3 cells
  • Supply and demand
  • Stream processing
  • Sliding windows
  • Price quotes

How you’ll practise

6 short steps · save and come back any time
  1. Requirements
  2. Data volume
  3. Ingestion
  4. Storage and processing
  5. Serving and freshness
  6. Wrap-up

Lala, personalized to you, gives a hint when you ask and reviews your design when you are ready.

What do interviewers look for?

In any data pipeline design round.

  • Clarifies sources, consumers and freshness needs
  • Chooses batch, streaming or both with reasons
  • Handles late, duplicate and malformed records
  • Makes each stage safe to retry
  • Explains storage formats and partitioning
  • Plans monitoring, backfills and data quality checks

Questions people ask about this interview question

Which design type is this question?
It is a data pipeline question. You design a surge pricing data pipeline and explain your choices the way you would in an interview.
Is this question asked at entry level?
It is marked Medium. Entry-level engineers can practise it, but it expects you to reason about requirements and trade-offs, not only list components.
What should I cover first?
Start with the data sources, the consumers and how fresh the data must be. Agree on scope with the interviewer before you design anything.
Can I practise it for free?
It is a premium question. Sign up and unlock it once for 10 credits; it then stays unlocked. When you finish, Lala, your personalized AI mentor, can review your design for 30 credits.

Related questions

Updated · Written by the SevyDevy team

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