How Lyft Deals with Seasonality

How can we predict the daily demand and supply a few weeks in advance? Before starting to predict a raw time series, we need to understand how people ride and drive, and what affects their patterns of behavior; what we call seasonality. Only then will we predict the underlying evolution of the trend, the overall growth of driver hours and passengers ride requests.

If you work at a business that experiences seasonality and haven't yet done the work to decompose your time series into seasonality and underlying trend, this is a great blog post on how Lyft does exactly that. This is the first step in any forecasting work for a seasonality-driven business.


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