Incentive Optimization and Budget Management

Uber has developed a sophisticated platform called Tarot (Targeting Orchestrator) to address the complex challenge of optimizing incentive allocation at scale. This system tackles the Multiple Knapsack Problem (MKP) by integrating uplift models with budget constraints, moving beyond heuristic-based approaches. Tarot enables dynamic ROI calculation by considering multi-objective optimization and strategic weighting, and employs a Budget Pacer to manage spend velocity and ensure quarterly budget adherence. The system has evolved to incorporate a multi-lever optimizer using Google OR-Tools CP-SAT solver and a two-layer ROI calculation that accounts for cross-vertical cannibalization and strategic weighting.