🚀 Understanding OTP Verification: A Tale of Two Approaches by Uber and Rapido 🚀 As a PM, I'm always fascinated by how different companies solve similar problems in unique ways. Today, let's delve into the world of OTP (One-Time Password) verification, specifically how Uber and Rapido handle this crucial step in their ride-hailing services. 🔍 The Two Approaches: Uber: Generates a new OTP for every ride. Rapido: Uses the same OTP for all rides. 👥 Consumer Perspective: Uber's Dynamic OTP: Security: Each ride gets a unique OTP, enhancing security by ensuring that the code can’t be reused. Trust: Builds consumer trust by showing a clear commitment to safety. Convenience: Might be seen as slightly less convenient because users have to deal with a new OTP every time. Rapido's Static OTP: Ease of Use: Users have one less step to worry about, making the experience more seamless. Speed: Faster onboarding for each ride since the verification step is reduced. Potential Risks: Reusing the same OTP might pose a security risk if the OTP is compromised. 💡 Technical Perspective: Uber's Dynamic OTP: Implementation: Requires a system that generates, sends, and verifies a new OTP for each ride. This involves more complex backend operations and SMS costs. Security: Higher level of security as each OTP is valid only for a single transaction, reducing the risk of misuse. Rapido's Static OTP: Implementation: Simpler backend logic, as the OTP generation and verification processes are less frequent. Efficiency: Reduced operational costs due to fewer OTP generation. Risk Management: Needs robust monitoring to detect and prevent misuse or fraudulent activities. 🔄 Balancing Act: Both approaches have their merits and trade-offs. The choice between dynamic and static OTP depends on the company's priorities: whether they emphasize top-tier security and consumer trust (Uber) or prioritize user convenience and operational efficiency (Rapido). 🔑 Key Takeaway: Understanding your user base and aligning your verification methods with your business goals is crucial. As product managers, we must continuously evaluate the impact of our security measures on both user experience and backend operations. #ProductManagement #UserExperience #CyberSecurity #TechInsights #Uber #Rapido #OTPVerification
What's the actual risk for customer that we are talking about?
Thanks for such detailed insights Archit
What about user set pin? User can set a 4 digit pin in app and then tell the same to driver to confirm the ride, it is reusable, easy to remember then generated otp, cost effective and secure as well
I think it should be different if a driver for a particular customer is being assigned again. Coz there is a possibility of driver knowing the OTP once and then if user is getting assigned the same driver in future, driver might know the OTP and can start and end the trip without actual passenger!
Well-written and informative post on Uber and Rapido's OTP strategies. Great breakdown of consumer and technical perspectives Archit Mittal
Great insights, Archit Mittal ! 🚀 Uber’s dynamic OTP boosts security and trust, while Rapido’s static OTP enhances user convenience and efficiency. This perfectly highlights the importance of aligning OTP methods with business goals to balance security and user experience.
As a user i like the OTP of Rapido.
Product Manager | Myntra | IIM Ahmedabad 2020-22 | Blinkit | ICICI Prudential Life Insurance | IIT Madras 2017 | Olympics Fanboy
6moI tell you one bigger problem with 4 digit OTPs. I often confuse it with vehicle number which is also a 4 digit number. Despite being so vigilant and sane person, I have told vehicle number as OTP to the rider and it had resulted into a loss of attempts. Very confusing. I propose a 3 or 5 digit OTPs or alphanumeric OTPs.