Overview
Company Name: redBus
Industry: Online Travel
Headquarters: Bangalore, Karnataka, India
Founded: 2006
Founders: Phanindra Sama, Charan Padmaraju, Sudhakar Pasupunuri
Key People: Prakash Sangam (CEO), Anoop Menon (CTO)
Parent Company: MakeMyTrip Limited
redBus is a leading online bus ticket booking platform with operations across India, Malaysia, Indonesia, Singapore, Peru, and Colombia. Headquartered in Bangalore, it connects over 3,500 bus operators to customers around the globe, offering services including buses, trains, and cab bookings. The company has also developed tools such as BOGDS and SeatSeller to support bus operators with cloud computing and inventory distribution.
Market Performance
In 2019, redBus reported a revenue of US $85 million with a Gross Merchandise Value (GMV) of ₹50 billion. This GMV rose to ₹67 billion (approximately US $800 million in 2023). Dominating with a substantial 70% share of the Indian online bus ticketing market, redBus has facilitated over 180 million trips for its customer base of more than 20 million users.
Funding and Acquisition
redBus started with an initial investment of ₹500,000 in 2006. It secured various funding rounds over the years:
- 2007: US $1 million from SeedFund and undisclosed investors.
- 2009: US $2.5 million from Inventus Capital Partners, Seed Fund, and others.
- 2011: US $6.5 million from Helion Venture Partners and previous investors.
In 2013, redBus was acquired by Ibibo Group, which subsequently became part of MakeMyTrip in 2017.
Strategic Partnerships and Expansions
Strategically aligning with state transport services, redBus has expanded its service offerings through numerous partnerships. This includes collaborations with Goa State Road Transport and Rajasthan State Road Transport Corporation to digitize their services online. In 2019, redBus further enhanced its offerings by partnering with Acko General Insurance for travel insurance, Truecaller for Android device integration, and Amazon India for expanding ticketing services.
Innovation and Product Development
redBus remains at the forefront of travel technology innovations with new customer-focused features such as live bus tracking, seat selection, and multiple discount options, promoted through a campaign by director Gautham Vasudev Menon. This reflects the company’s ongoing dedication to innovation and enhancing user travel experiences.
Management
Prakash Sangam (CEO): Prakash Sangam leads redBus, drawing from significant experience in travel and internet services, notably with Info Edge India Ltd (Naukri Group). Under his leadership, redBus focuses on digital growth and operational efficacy. The management team supports seamless travel booking services globally, maintaining competitive relevance through innovation and strategic partnerships.
Competitor Analysis
Key Competitors
1. AbhiBus
- Founded: 2008
- Headquarters: Hyderabad, Telangana, India
- Specialties: Online real-time bus ticketing, e-ticketing systems, fleet management solutions, vehicle tracking systems, logistics management.
- Notable Collaborations: Partnered with RBL Bank for travel discounts and Hitachi Payment Services for digitizing Himachal Road Transport's ticketing.
- Market Position: Leading travel aggregator in India, working with over 2500 operators across 75000 routes.
2. ixigo
- Founded: 2007
- Headquarters: Gurgaon, Haryana, India
- Specialties: AI-based travel app providing air, rail, buses, and hotel bookings, known for personalized travel insights.
- Funding: Secured $96.6M with investors like Sequoia Capital India and MakeMyTrip.
- Market Reach: Used by over 150 million customers.
3. MakeMyTrip
- Founded: 2000
- Headquarters: Gurgaon, Haryana, India
- Specialties: Offers comprehensive travel solutions: air ticketing, hotels, buses, and holiday packages.
- Corporate Structure: Part of the GO-MMT group, one of the industry's largest networks with Goibibo and RedBus.
- Market Influence: A pioneer in India’s online travel sector with a broad network.
4. Goibibo
- Founded: 2009
- Headquarters: Gurgaon, Haryana, India
- Specialties: Known for fast bookings, user-friendly interfaces, and competitive pricing.
- Corporate Connections: As part of the GO-MMT group, shares resources with MakeMyTrip and RedBus.
- Competitive Advantage: Focused on swift service delivery and customer satisfaction.
5. Other Notable Competitors
- FlixBus: Recently expanded into India, partnering with AbhiBus for local expertise in intercity travel.
- IntrCity SmartBus, Bookaway, Vexere: These companies offer specialized services in bus travel, emphasizing innovative and customer-centric models.
Strategic Insights
Competitors of redBus are deploying various strategies, including investing in technology and forming partnerships to enhance user experience and service quality. There's a concentrated effort among competitors on market expansion and tech-driven solutions, indicating potential growth areas for redBus. Customer-centric strategies, like streamlined booking processes and additional value-added services, are creating competitive advantages for rivals, suggesting areas for redBus to fortify its market standing.
