This is redBus case study

1. redBus
redBus was founded in 2006 by
Phanindra Sama, Sudhakar
Pasupunuri and Charan Padmaraju,
engineers from the Birla Institute of
Technology and Science.
Challenges Solution Results
To meet these
challenges and
overcome them, they
designed this amazing
business model that
helped them to reach
a 70% share in the
Indian online bus
ticketing segment.
Book bus tickets online
with the world's best
bus ticketing platform -
redBus. Compare the
ticket prices, find bus
schedules, and get the
best deal!
The company's net revenue
increased by 56% to $14.1
million in the October-
December quarter of 2021,
with a gross booking value of
$163 million.
redBus Business Case Study
redBus is an Indian online bus ticketing platform, that provides ticket booking facilities
through its website and iOS and Android mobile apps. It is headquartered in Bangalore
and works like a hub, acting as a medium for a network of more than 2000 bus operators,
across the countries of India, Malaysia, Indonesia, Singapore, Peru, and Colombia. It
claims to have registered over 180 million trips, with a customer base of over 20 million.
In 2018, the company achieved a GMV of ₹50 billion (equivalent to ₹57 billion or US$710
million in 2020), with a 70% share in the Indian online bus ticketing segment.

2. Story Began of redBus
redBus was founded in 2006 by Phanindra Sama, Sudhakar Pasupunuri, and Charan Padmaraju,
engineers from the Birla Institute of Technology and Science, who also worked together at variou
organizations before founding the company. With an initial investment of ₹500,000 (equivalent t
₹1.4 million or US$17,000 in 2020), the founders began operations in 2006, by tying up with var
travel agents for seat reservations through the redBus portal.

4. About the redBus
redBus is India’s largest online bus ticketing platform headquartered in Bangalore
and owned by Goibibo. It provides a ticket booking facility through its website,
iOS, and Android mobile apps and connects bus travellers with a network of over
2500 bus operators.
For better guidance, the company joined the TiE Entrepreneurship acceleration
program where they got the guidance of great mentors.
Where Does redBus Operate?
Till now, redBus has served more than 18 million people across the world.
Outside India, redBus also has a strong foothold in many countries :
Countries where redBus operates:
1. Colombia
2. India
3. Indonesia
4. Malaysia
5. Peru
6. Singapore

5. Key Services of redBus
redBus offers a secure and manageable experience for booking tickets online.
Moreover, it offers complete choices to the customers such as choosing their
destination with their preferred seating options. redBus not only works in the
roadways domain but recently enters into the railway domain under the name of
redRail.
List of services provided by redBus:
1. Bus Hire
2. Bus Tickets
3. rPool (Bikepool & Carpool)
4. rYde
5. redRail
Target Audience of redBus
redBus generally target audiences who want to book a bus ticket without going to the
physical place to buy a ticket. This concept of redBus is made to acquire its consumers
by providing customer support, discounts, and other perks which are impossible to
get at the physical bus counter.

6. The business model of redBus is very strong along with its digital
marketing strategies. redBus' business model is straightforward, as
it charges a commission on every bus ticket booking. It also charges
a commission from the bus operator on every ticket booked through
its platform. The commission is approximately 10-20% based on the
value of the ticket being sold.
redBus also provides hotel services along with ticket booking. It
offers great deals on various occasions and also offers special
discounts as well. But, the most advantageous factor that comes
with RedBus is that it provides an opportunity for the customer to
choose the most favourable route to their destination with the best
seat in the best bus.
Business Model of redBus

7. How Does redBus Make
Money?
redBus makes its money by charging some fee as commission from
the bus operators on each booked ticket on redBus. The commission
comes as 10-20% of the total ticket value.
In 2019, redBus received great success, it had annual revenue of $85
million. The company has a valuation of $710 million in 2020. Now, it
has over 36 million users from all over the world with 3500 bus
operators according to the data given on its website. And known as
the largest online bus ticket company.

8. Strengths are the unique skills and advantages a company has over other
companies in the market.
Online Presence: redBus started its journey as an online app. This gives redBus
a huge advantage in today’s time as now everybody has to change their
functions from an offline to an online presence.
Employee Benefits During a Pandemic: Since redBus from the very beginning
has been an online platform, the employees of redBus have been accustomed
to working in an indoor and online environment.
Strengths

9. Weaknesses
Weaknesses as we all know are things that pull back the company and hold it down
from achieving its true potential.
The problem of Interaction: While online has its perks and benefits, it also has its
fair share of disadvantages, the biggest of which is no direct interaction. This can
cause a lot of problems in case there is a mix up in tickets or seating arrangements
etc.
The Abundance of Competition: Competition is good but too much competition
can be dangerous for a business too. In the case of redBus, many other companies
are offering the same services. In such scenarios, it is essential to come up with
something new from time to time which brings us to redBus next weakness that is:
Lack of Innovation: In the business of selling online tickets there isn’t much one can
do more. In such precis cooking up with new things is difficult and this leads to it
being a weakness of the company.

10. Opportunities are certain situations in which if things are done at the right time
and right way, entire scenarios of companies can change leading to the
companies benefit and boon.
Pandemic: The pandemic even though a terrible thing can be used to one’s
benefit if used properly. Due to the pandemic, all companies have been forced to
go online from offline based functions, redBus has been online since its birth
and this gives it an edge over others because it knows the online interface better
than other companies.
Social Media: There has been an increase in the number of people using social
media around the world. redBus can use the options of social media platforms to
promote its business and solve the first weakness which also includes gathering
customer feedback.
Opportunities

11. Threats are the exact opposite of opportunities. While opportunities cause a boon in the
business, threats cause a bane.
Lockdown: While it is an opportunity, the pandemic is also a bane for redBus since if the
number of COVID 19 cases increase, states can put a lockdown which ceases the operations
of buses which will cause a huge loss for redBus.
New Competition: There have been many new companies that have started the same
business as redBus which causes more competition and can lead to loss of customers and
financial losses.
Voice of Action from Agents: The redBus business has stopped businesses of travel agents
who were used to taking a commission for the booking. Because of hatred, these parties can
certainly start deploying the name of redBus by spreading fake rumours to increase their
business in the market.
Threats

12. Thank
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