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  • Group 5: Redbus Case

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    Jayesh Menashi
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    RedBus is an online bus ticket booking platform that was born out of the founder's personal experience with the inefficiencies of booking bus tickets through travel agents. Prior to RedBus, the bus travel industry value chain was fragmented with bus operators dependent on travel agents for ticket sales. RedBus introduced a digital platform that facilitated an improved value chain by allowing direct ticket sales between operators and travelers. This provided transparency, flexibility and increased revenues for operators while offering travelers more choice and reliability. RedBus has since grown significantly by maximizing value for customers across its three main revenue streams and enjoying network effects as online booking increased capacity utilization for operators.

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    Redbus

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    RedBus is an online bus ticket booking platform that was born out of the founder's personal experience with the inefficiencies of booking bus tickets through travel agents. Prior to RedBus, the bus travel industry value chain was fragmented with bus operators dependent on travel agents for ticket sales. RedBus introduced a digital platform that facilitated an improved value chain by allowing direct ticket sales between operators and travelers. This provided transparency, flexibility and increased revenues for operators while offering travelers more choice and reliability. RedBus has since grown significantly by maximizing value for customers across its three main revenue streams and enjoying network effects as online booking increased capacity utilization for operators.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    16 views19 pages

    Group 5: Redbus Case

    Uploaded by

    Jayesh Menashi
    RedBus is an online bus ticket booking platform that was born out of the founder's personal experience with the inefficiencies of booking bus tickets through travel agents. Prior to RedBus, the bus travel industry value chain was fragmented with bus operators dependent on travel agents for ticket sales. RedBus introduced a digital platform that facilitated an improved value chain by allowing direct ticket sales between operators and travelers. This provided transparency, flexibility and increased revenues for operators while offering travelers more choice and reliability. RedBus has since grown significantly by maximizing value for customers across its three main revenue streams and enjoying network effects as online booking increased capacity utilization for operators.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 19

    Group 5

    REDBUS CASE
    FLOW

    Structure of Bus Value chain of Bus


    About redBus Travel industry Travel industry -
    before redBus before redBus

    Challenges faced
    Value chain of Bus
    by redBus while
    Travel industry - Entry of redBus
    entering the
    after redBus
    industry

    Progress of redBus
    - how is it doing
    now?
    Personal Experience helped in Business Idea
    •

    •
    A bus - ticketing company that
    was born Digital
    •
    •

    •
    Bus Operators Dependent on
    Travel Agents
    Bus Operators Dependent on
    Travel Agents

    •
    •
    •

    •
    •
    Fragmented Supply Chain posed
    challenges
    •

    •
    •
    •
    •
    •
    •

    •
    Before redBus entered:
    Little Value in the chain without platform

    -Vacant
    Seats
    -Late
    Payments
    from agents
    -High
    prices
    How redBus mastered the challenges
    and won the opportunities
    Focussed on improving own
    business
    redBus: Introduced digital platform that
    facilitated processes
    •

    •
    •

    –
    •
    •
    •
    Adding value to operators & travellers

    Value for •
    •
    Increased in revenues
    Timely payment for ticket sales
    private bus •
    •
    Standardized commission rates
    Equal visibility to all operators
    operators • Eliminated dependency of bus operators on travel agents

    • Transparency in booking process and pricing


    Value for bus • Reliability of service
    • Real-time access to available tickets on requested routes
    travelers • Choice on bus, seat number, payment mode, etc.
    Maximizing value for its customers

    -Vacant
    Seats
    -Late
    Payments
    from agents
    -High
    prices
    A common platform for all that
    is more transparent & flexible
    Chief Architect in bringing
    Disruptive Transformation
    •

    •
    •

    •
    Performance of redBus

    •Sale of BOSS to bus operators


    •Sale of Seat Seller Plugin to
    Three major OTAs
    revenue streams •Commission charged to Bus
    Operators for sale of tickets

    Enjoying
    network effects

    •Increase in online booking on


    redBus motivated more
    operators to increase capacity
    •Increased capacity attracted
    more traffic to redBus Customer segments:

    •Private Bus Operators


    •Bus Travelers
    •OTA (Expedia & Yatra)
    •Government RTC
    •Bus Manufacturers(Volvo &
    Daimler)
    Performance of redBus

    120.00% 500

    450
    100.00%
    OTA 400

    20% 80.00%
    350

    300

    60.00% 250
    redBus
    200
    Platform 40.00%
    50% 150
    Telepho 100
    ne 20.00%

    30% 76.72% 74.84% 75.95% 79.74% 81.45%


    50

    0.00% 0
    2007 2008 2009 2010 2011

    Online travel industry Online non travel industry


    Total Market Size
    Proliferated growth
    •

    FY2007 FY2008 FY2009 FY2010 FY2011 FY2012


    THANK YOU!

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