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Lyft·Software Engineer·Onsite - System Design / Architecture·Senior

Senior
Jun 2026

Summary

System design round at Lyft for a software engineer role. The prompt was a charity donation platform with a lot of moving parts, payment reliability being the main focus. Pretty dense for a single session.

Questions Asked (5)

Q1

Design a charity donation website that uses an external payment SDK. How do you handle payment failures, partial failures, and ensure no donations are lost or recorded with wrong amounts?

System DesignTechnical Trade-offsAPI & Integrations
Author's notes

This was the core of the whole thing.

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AI HintsAI Generated

Suggested Approach

Start by clarifying requirements: donation amounts, payment methods, and consistency guarantees. Then design a system that treats the payment SDK as an unreliable external dependency, using idempotency, webhooks, and a reconciliation process to handle failures and ensure data integrity.

Pro tip: Emphasize idempotency and reconciliation—these are the keys to preventing lost or duplicate donations. Also, mention that you would log every payment attempt and its outcome for auditing and debugging.

1. Clarify Requirements and Constraints

Ask about expected traffic, payment methods, and consistency requirements (e.g., eventual vs. strong). Understand the payment SDK's capabilities and limitations.

2. Design for Idempotency and Retries

Use idempotency keys for each donation attempt to prevent duplicate charges. Implement retries with exponential backoff for transient failures, but only for idempotent operations.

3. Handle Payment Failures and Partial Failures

Categorize failures: network errors, declined payments, and partial failures (e.g., payment succeeded but recording failed). Use webhooks to receive asynchronous payment status updates and update the database accordingly.

4. Ensure Data Consistency with Reconciliation

Implement a reconciliation job that periodically compares the payment provider's records with your database. Detect and resolve discrepancies, such as missing donations or amount mismatches.

5. Monitor and Alert

Set up monitoring for payment success rates, failure rates, and reconciliation discrepancies. Alert on anomalies to quickly address issues.

Key Points to Mention

  • Idempotency keys to prevent duplicate charges
  • Webhooks for asynchronous payment status updates
  • Retry logic with exponential backoff for transient failures
  • Reconciliation process to detect and resolve discrepancies
  • Database transactions and locking to ensure atomicity
  • Logging and monitoring for auditing and alerting

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.

Q2

How would you design the system to handle sudden traffic spikes during high-profile donation campaigns?

System DesignTechnical Trade-offs
Author's notes

I went with a queue-based async processing model pretty quickly and they seemed to like that direction.

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AI HintsAI Generated

Suggested Approach

Start by clarifying the requirements and scale of the donation campaigns, then propose a scalable, resilient architecture that can handle sudden spikes. Focus on horizontal scaling, caching, and asynchronous processing to absorb traffic bursts, and discuss trade-offs between consistency, availability, and cost.

Pro tip: Emphasize the importance of designing for failure and having graceful degradation—donors should still be able to donate even if some non-critical services are down. Also, mention the need for real-time monitoring and auto-scaling to react quickly to spikes.

1. Clarify Requirements and Scale

Ask questions to understand expected traffic patterns, peak load, data consistency needs, and budget constraints. This ensures your design addresses the actual problem.

2. High-Level Architecture

Outline a scalable architecture using load balancers, stateless services, and a CDN for static assets. Consider microservices for donation processing, user management, and notifications.

3. Scalability and Elasticity

Describe how to handle spikes with horizontal scaling, auto-scaling groups, and caching (e.g., Redis for session data, CDN for content). Use queue-based load leveling for write-heavy operations.

4. Data Consistency and Reliability

Discuss database choices (e.g., sharded SQL, NoSQL) and trade-offs between consistency and availability. Implement idempotency for donation transactions and use distributed transactions or sagas if needed.

5. Monitoring and Graceful Degradation

Explain how to monitor system health with metrics and alerts, and design fallbacks (e.g., read-only mode, queueing donations) to maintain core functionality during extreme load.

Key Points to Mention

  • Horizontal scaling and auto-scaling to handle variable load
  • Caching strategies (CDN, Redis) to reduce database load
  • Asynchronous processing with message queues for donation writes
  • Database sharding and replication for high throughput
  • Idempotency and exactly-once processing for financial transactions
  • Monitoring, alerting, and graceful degradation to ensure availability

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.

Q3

Design the APIs for donating, viewing donation history, and generating receipts.

API & IntegrationsSystem Design
Author's notes

Felt more straightforward compared to the rest.

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AI HintsAI Generated

Suggested Approach

Start by clarifying requirements: who donates (riders), what they donate to (e.g., Lyft's charitable partners), and how receipts are used (tax, confirmation). Then design RESTful APIs for donation creation, history retrieval with pagination/filtering, and receipt generation (on-demand or automatic), ensuring idempotency, security, and scalability.

Pro tip: Discuss idempotency keys for donation endpoints to prevent duplicate charges, and consider asynchronous receipt generation with a signed URL to avoid blocking the user experience.

1. Clarify Requirements

Ask about donation sources (in-app, round-up), frequency (one-time, recurring), receipt format (PDF, email), and compliance needs (tax laws, data retention).

2. Define API Contracts

Specify endpoints, HTTP methods, request/response schemas, and status codes for donation, history, and receipt operations, using RESTful conventions.

3. Address Non-Functional Requirements

Incorporate idempotency, pagination, filtering, rate limiting, authentication/authorization, and error handling into the API design.

4. Design Data Model & Storage

Outline database tables for donations, receipts, and users, considering indexes for efficient history queries and storage for receipt files.

5. Discuss Scalability & Integration

Explain how the APIs integrate with payment systems, notification services, and analytics, and how they scale with caching, async processing, and sharding.

Key Points to Mention

  • Idempotency keys for POST /donations to prevent duplicate charges
  • Pagination (cursor-based) and filtering (date range, amount) for GET /donations
  • Receipt generation: synchronous vs asynchronous, with secure signed URLs
  • Authentication and authorization (OAuth 2.0, scopes) to protect user data
  • Error handling with consistent error codes and messages
  • Data privacy and compliance (PCI DSS, GDPR) for donation and receipt data

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.

Q4

What does your data model look like for donations, donors, and campaigns?

Data ModelingSystem Design
Author's notes

I drew out three core tables and the relationships.

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AI HintsAI Generated

Suggested Approach

Start by clarifying the business requirements and access patterns for donations, donors, and campaigns, then propose a normalized relational schema with core entities and relationships. Discuss how you would handle scalability, data integrity, and analytical needs, and be ready to adapt the model based on specific use cases like reporting or real-time processing.

Pro tip: Demonstrate awareness of trade-offs between normalization and denormalization for read-heavy analytics, and mention how you would evolve the schema over time using migrations and versioning.

1. Clarify Requirements and Access Patterns

Ask questions to understand the scale, read/write patterns, and key use cases (e.g., real-time donation processing, reporting, donor segmentation). This ensures the model aligns with business needs.

2. Identify Core Entities and Relationships

Define the main entities: Donor, Campaign, Donation, and possibly Organization or Payment. Specify relationships (e.g., a donor can make many donations, a campaign has many donations).

3. Design the Schema with Keys and Attributes

Propose tables with primary keys, foreign keys, and essential fields (e.g., Donor: id, name, email; Campaign: id, name, goal, start_date; Donation: id, donor_id, campaign_id, amount, timestamp). Consider adding junction tables for many-to-many relationships if needed.

4. Address Scalability and Performance

Discuss indexing strategies, partitioning (e.g., by date), and potential denormalization for analytics. Mention how you would handle high write throughput and large data volumes.

5. Consider Data Integrity and Evolution

Talk about constraints (foreign keys, unique constraints), transactions, and how to handle schema changes over time (migrations, versioning). Also mention soft deletes and audit trails if relevant.

Key Points to Mention

  • Normalization vs. denormalization trade-offs for transactional vs. analytical workloads
  • Indexing on foreign keys and frequently queried fields (e.g., donor email, campaign status)
  • Handling many-to-many relationships (e.g., donors to campaigns via donations)
  • Data types and constraints (e.g., decimal for amounts, timestamps with timezone)
  • Scalability considerations: sharding, partitioning, and read replicas
  • Audit trails and soft deletes for compliance and historical tracking

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.

Q5

How would you approach observability for this system, and what signals would you monitor for fraud?

Product Analytics & MetricsSystem Design
Author's notes

Observability I covered reasonably well: latency on payment processing, queue depth, error rates by failure type.

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AI HintsAI Generated

Suggested Approach

Start by defining the system's critical user journeys and fraud-sensitive flows, then propose a layered observability strategy covering metrics, logs, and traces. Focus on actionable signals that balance fraud detection with user experience, and explain how you'd iterate on thresholds and models.

Pro tip: Emphasize that observability for fraud is not just about catching bad actors but also about minimizing false positives that hurt legitimate users—show you understand the business trade-off.

1. Identify critical flows and fraud vectors

Map out the system's key user journeys (e.g., signup, payment, ride booking) and pinpoint where fraud is most likely to occur, such as account takeover, promo abuse, or payment fraud.

2. Define observability pillars

Outline the three pillars—metrics, logs, and traces—and explain how each will be instrumented. For example, metrics for real-time monitoring, logs for detailed forensics, and traces for end-to-end request visibility.

3. Select fraud-specific signals

List concrete signals to monitor, such as velocity of transactions per user, device fingerprint anomalies, IP reputation, and behavioral biometrics. Tie each signal to a fraud type.

4. Design alerting and response

Describe how you'd set thresholds, use anomaly detection, and route alerts to the right teams. Include automated responses like step-up authentication or temporary blocks.

5. Iterate and measure effectiveness

Explain how you'd track false positive/negative rates, adjust models, and incorporate feedback loops from fraud analysts to continuously improve detection.

Key Points to Mention

  • Use of distributed tracing to follow a request across microservices and identify fraud patterns
  • Real-time streaming metrics (e.g., via Kafka, Flink) for immediate fraud detection
  • Behavioral analytics: monitoring user actions like typing speed, mouse movements, and navigation patterns
  • Device and network signals: device ID, IP geolocation, proxy detection, and velocity checks
  • Integration with machine learning models for anomaly scoring and adaptive thresholds
  • Business metrics: fraud rate, false positive rate, and impact on conversion or retention

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.