Name: Business Model Of RedBus | A Detailed Case Study By IIDE
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Insightful analysis! RedBus's innovative business model revolutionizes the transport industry. Well done!

RedBus's success in online ticketing is driven by innovation and a strong focus on customer satisfaction.

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<div class="raw-html-embed"><div data-bglz="1" class="et_pb_text_inner"><h2><b>About RedBus</b></h2><p><img decoding="async" class="wp-image-232814 alignnone " src="https://iide-media.blr1.cdn.digitaloceanspaces.com/production/upload-1736872594383-dd42bd63c905ae3d7807d22a886554cb.webp" alt="RedRedBus Brand Logo-Business Model of RedBus" width="333" height="212" data-srcset="https://iide.co/wp-content/w3-webp/uploads/2021/09/image4-59.pngw3.webp 228w, https://iide.co/wp-content/uploads/2021/09/image4-59-150x95.png 150w" sizes="(max-width: 333px) 100vw, 333px"></p><p><span style="font-weight: 400;">In the year 2006, a very innovative and problem-solving Idea came to the mind of Phanindra Sharma when he was struggling to find a bus for his way back home.</span></p><p><span style="font-weight: 400;">Leaders say that ‘Necessity is the mother of invention’. Phanindra Sama, Charan Padmaraju, and Sudhakar Pasupunuri from BITS Pilani believed in the same and came up with an idea to tackle this problem, RedBus.</span></p><p><span style="font-weight: 400;">For better performance, they joined the TiE Entrepreneurship acceleration program to upskill their network and learn more about their presentation skills. They got the guidance of great mentors. No doubt, redBus came out radiantly. but today it sells more than 5000 tickets per day.</span></p><p><span style="font-weight: 400;">Today, RedBus is India’s first organized bus ticket booking service. It is also the biggest aggregator of bus tickets in the country. RedBus’ business proposal is simple—the company can book your bus tickets online. Once you log onto the website, you can choose tickets in 15+ states, across&nbsp; 80, 000 routes, through a network of 2500 bus operators, in one click. The service allows passengers to choose their seats as well as book return tickets.</span></p><p><span style="font-weight: 400;">Working on the system of booking, RedBus blocks 10-15 seats in all buses and partners such as MakeMyTrip, the travel portal, until an hour before departure time.</span></p><p><span style="font-weight: 400;">The company makes its money from the commission it earns on each ticket. Expanding its reach, RedBus also sells tickets at post offices.</span></p><p><span style="font-weight: 400;">Now, that we have a little knowledge about redBus, Let’s move to their Business Model.</span></p><h2><b>Business Model of RedBus</b></h2><p><img decoding="async" class="wp-image-232815 alignnone " src="https://iide-media.blr1.cdn.digitaloceanspaces.com/production/upload-1736872594878-9fbf707d1ecf8322ad1f74366ef27c7a.webp" alt="RedBus Illustration - Business Model of RedBus" width="428" height="243" data-srcset="https://iide.co/wp-content/w3-webp/uploads/2021/09/image3-67-300x170.pngw3.webp 300w, https://iide.co/wp-content/uploads/2021/09/image3-67-150x85.png 150w, https://iide.co/wp-content/uploads/2021/09/image3-67.png 313w" sizes="(max-width: 428px) 100vw, 428px"></p><p><span style="font-weight: 400;">RedBus started with just INR 500000 rupees which was the saving of their 3 co-founders. They had to face several challenges, in the beginning, like, payment gateway issues and propagate the ideal culture, working environment and value system.</span></p><p><span style="font-weight: 400;">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.</span></p><ul><li aria-level="1"><h3><b>Operations of redBus</b></h3></li></ul><p><span style="font-weight: 400;">Redbus is developing a software called BOSS “Bus Operators Software System” used by most travel agents and operators.</span></p><p><span style="font-weight: 400;">The way it works is that the bus operators who use this software use it to manage the seats of their buses in their fleet. They pay an annual premium for the software. All data is stored on AWS on a custom SQL database.</span></p><p><span style="font-weight: 400;">Travel agents have access to an online agent portal or to the software itself.</span></p><p><span style="font-weight: 400;">To provide great benefits and offers for their valuable customers, they are dedicated to providing great customer service. In this way, the company offers the most superior advantage to its customers and that too at a very reasonable.</span></p><p><span style="font-weight: 400;">Now, let’s move to the key services provided to the customers by redBus.&nbsp;</span></p><ul><li aria-level="1"><h3><b>Key Services Provided by RedBus</b></h3></li></ul><p><span style="font-weight: 400;">RedBus is the leading bus ticket company that gives an incredible fraction of offerings to its clients, offerings which you can not deny however pick RedBus. And to this result, RedBus has millions of glad and loyal clients throughout the globe.</span></p><ul><li style="font-weight: 400;" aria-level="1"><h4><span style="font-weight: 400;">SAFETY+</span></h4></li></ul><p><span style="font-weight: 400;">With Safety+ they have brought in a set of measures like Sanitized buses, mandatory masks etc. to ensure that their customers travel safely.</span></p><ul><li style="font-weight: 400;" aria-level="1"><h4><span style="font-weight: 400;">SUPERIOR CUSTOMER SERVICE</span></h4></li></ul><p><span style="font-weight: 400;">They put their experience and relationships to good use and are available to solve their travel issues.</span></p><ul><li style="font-weight: 400;" aria-level="1"><h4><span style="font-weight: 400;">LOWEST PRICES</span></h4></li></ul><p><span style="font-weight: 400;">They always try to give their customers the lowest price with the best partner offers.</span></p><ul><li style="font-weight: 400;" aria-level="1"><h4><span style="font-weight: 400;">UNMATCHED BENEFITS</span></h4></li></ul><p><span style="font-weight: 400;">They take care of travel beyond ticketing by providing you with innovative and unique benefits.</span></p><p><span style="font-weight: 400;">redBus has a very classified target audience, to know about them better. Let’s move to the next aspect.</span></p><ul><li aria-level="1"><h3><b>Target Audience of RedBus</b></h3></li></ul><p><span style="font-weight: 400;">RedBus in particular targets the literate middle-magnificence people throughout the country, who’re really dependable on net services and get to tour a lot.</span></p><p><span style="font-weight: 400;">However, in the beginning, RedBus’s important goal becomes to get as many bus operators as possible. But their concept was rejected by the bus operators due to the fact that they were well in their comfort zone of traditional methods. Then, the founders went for the customer’s pool to drive greater travellers’ site visitors towards their website. This become a tremendous achievement and the organization skilled a large boom graph.</span></p><p><span style="font-weight: 400;">It’s the uniqueness only which drives the venture to extreme success. This unique quality in the business model of redBus highlighted them amongst the top players.</span></p><ul><li aria-level="1"><h3><b>The Uniqueness of redBus Business Model</b></h3></li></ul><p><img decoding="async" class="wp-image-232817 alignnone " src="https://iide-media.blr1.cdn.digitaloceanspaces.com/production/upload-1736872595325-b9e16f44c9daebd429f106cac60e4b4f.webp" alt="RedBus Advertisement- Business Model of RedBus" width="370" height="289" data-srcset="https://iide.co/wp-content/w3-webp/uploads/2021/09/image1-72.pngw3.webp 232w, https://iide.co/wp-content/uploads/2021/09/image1-72-150x117.png 150w" sizes="(max-width: 370px) 100vw, 370px"></p><p><span style="font-weight: 400;">The quality which separates RedBus from others is that it provides an opportunity to the customers to select their favourable route for their destination. Not only this, RedBus provides its customers with tons of different offers to its customers to get better customer engagements.</span></p><p><span style="font-weight: 400;">Their social media strategies are designed so well that it always finds great proposals for its audiences. Its approach to social media is quite different from others.</span></p><p><span style="font-weight: 400;">In the very next segment, we have the money-making process of redBus. Let’s quickly move to that.</span></p><ul><li aria-level="1"><h3><b>Money-Making process of redBus</b></h3></li></ul><p><img decoding="async" class="wp-image-232818 alignnone " src="https://iide-media.blr1.cdn.digitaloceanspaces.com/production/upload-1736872595785-82123734b6d4e3f627fba9180109a93f.webp" alt="RedBus Advertisement- Business Model of RedBus" width="393" height="229" data-srcset="https://iide.co/wp-content/w3-webp/uploads/2021/09/image2-60-300x175.pngw3.webp 300w, https://iide.co/wp-content/uploads/2021/09/image2-60-150x87.png 150w, https://iide.co/wp-content/uploads/2021/09/image2-60.png 304w" sizes="(max-width: 393px) 100vw, 393px"></p><p><span style="font-weight: 400;">RedBus makes its money from the most effective way of work. It costs a few charges as the fee from the bus operators on every booked ticket on RedBus. The fee comes as 10-20% of the whole ticket value.</span></p><p><span style="font-weight: 400;">The founders commenced the organisation with a quantity of Rs. 500,000 from their savings. When the organisation was built, it did not make any income withinside the first 12 months however in 2009, it acquired a brilliant deal of fulfilment with a turnover really well worth INR 5 crore. Then in 2005, RedBus income grew by 6 times its last.</span></p><p><span style="font-weight: 400;">And now, RedBus has over 18 million users from 24 states, 30,000+ outlets along 80,000 routes, and 2500 bus operators. And known as the largest online bus ticket company.</span></p><p><span style="font-weight: 400;">redBus offers a variety of ticket booking offers. Let’s go through them one by one.</span></p><h2><b>Redbus Ticket Booking Offers</b></h2><p><span style="font-weight: 400;">RedBus definitely makes it more convenient and comfortable for its customers by providing multiple travel Bookings offers such as</span></p><ul><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Thousands of routes across multiple travel options.</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Efficient customer service</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Low fare of tickets</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Pilgrimage tours</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Discounts, deals and festival offers, etc</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Mobile ticketing App</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Bus hirings</span></li></ul><p><span style="font-weight: 400;">Their revenue model contains a very interesting fact about them. Let’s go through that to find it out.</span></p><h2><b>RedBus Revenue Structure</b></h2><p><span style="font-weight: 400;">As we know that their primary revenue model is very simple. redBus charges commission from the bus operator on every ticket booked through their platform. The commission is around 10-20% of the value of the ticket being sold.</span></p><p><span style="font-weight: 400;">But, what we don’t know is that they have another source of income too.</span></p><p><span style="font-weight: 400;">redBus also sells its ticket booking software to bus operators. This software is easy to comprehend and operators can book tickets, manage to book and optimise.</span></p><p><span style="font-weight: 400;">So, even if you buy tickets directly from the operators offline, they will most probably use the software provided by redBus.</span></p><p><span style="font-weight: 400;">Not their business model but also their implementation, has made them one of the biggest acquisitions in the Indian startup scene.</span></p></div></div>

<div class="raw-html-embed"><div data-bglz="1" class="et_pb_text_inner"><h2><b>Conclusion</b></h2><p><span style="font-weight: 400;">RedBus has had enormous success since its launch in 2006. There are tons of bus services available 24×7 and meets all the needs of the traveller. Its business model is quite simple and strong but most importantly, RedBus is wildly famous and welcomed among the common people.</span></p><p><span style="font-weight: 400;">As it eases its major issue with finding a fine bus for any destination. It’s one step closer to fulfilling every need of a traveller along with its destination requirements. RedBus was one of its kind and it’s a true inspiration for developing services for the betterment of common people.</span></p><p><span style="font-weight: 400;">So, we also now know that Online Marketing skills are gaining importance in today’s corporate world. As in the case of redBus, digital presence only helped them to come up with a solution and establish a great venture out of that. You can learn these digital marketing skills too, with our </span><a href="https://iide.co/online-digital-marketing-certification/?utm_source=Organic&amp;utm_medium=Course_Differentiator&amp;utm_campaign=Short_Courses"><span style="font-weight: 400;">Short term certification courses in Digital Marketing</span></a><span style="font-weight: 400;">.</span></p><p><span style="font-weight: 400;">If you’re interested in learning more about digital marketing, you can check out our </span><a href="https://bit.ly/Survey-On-DigitalMarketing" rel="nofollow noopener noreferrer" target="_blank"><span style="font-weight: 400;">Free Digital Marketing Basics Masterclass</span></a><span style="font-weight: 400;"> by Karan Shah, IIDE’s Founder and CEO.</span></p><p><span style="font-weight: 400;">Thank you for reading this case study! We hope you find it interesting, would love it if you can spare some time sharing your view on it. If you would like to know more about us drop your email in the comment section and we will revert to you.</span></p></div></div>

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Looking for the Business Model of RedBus? In this case study, we’ve covered the Revenue Structure, Money-Making Process and lots more.

Business Model Of RedBus | A Detailed Case Study By IIDE

<div class="raw-html-embed"><div class="et_pb_text_inner"><p><span style="font-weight: 400;">RedBus is an online bus ticketing platform developed in India, headquartered in Bangalore but connects bus travellers with a network of over 2500 bus operators. With a massive audience of more than 18 Million, they have expanded their roots across India, Malaysia, Indonesia, Singapore, Peru and Colombia.</span></p><p><span style="font-weight: 400;">In this case study, We’ll cover the business model of redBus including its operations, key services, target audience, ticket-booking offer and revenue model.</span></p><p><span style="font-weight: 400;">So, let’s start and analyse about RedBus as an Online ticketing platform.</span></p></div></div>

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A Case Study on the Impressive Business Model of RedBus

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