Redbus Business Model: How does redbus Make Money?

redBus is the first organized bus ticket service in India, and it’s the biggest among bus ticket organizing companies. India, the 5th biggest contributor to global money-making, wants to grow travel and tourism to $250 billion by 2030 and $1 trillion by 2047.


RedBus Company Details

Origin Country India
Established year 2006
CEO Prakash Sangam
Headquarters Bangalore
Founder Phanindra Sama
Brand Ambassador Allu Arjun
Products Booking buses, trains and cabs
Number Of employees 500-1,000

About Red Bus:

redBus is India’s largest online bus ticketing platform. You can book tickets through its website or mobile apps. redBus connects travelers with over 2500 bus operators. To improve, redBus joined the TiE Entrepreneurship acceleration program. Getting guidance from experienced mentors redBus was the first of its kind and has done really well. The company has two parts: YourBus and Empresa Digital Peruana S.A.C.

Key Services Of Redbus:

redBus simplifies the process of booking tickets online, ensuring it’s safe and hassle-free. Customers have the freedom to select their destination and preferred seating arrangements. Additionally, redBus has expanded its services to include train ticket booking through redRail, providing travelers with more options for their journey.

Redbus Offers Various Services:

Bus Hire: You can rent a bus for events or group travel, providing a convenient and tailored transportation solution.

Bus Tickets: Easily book bus tickets online, offering a hassle-free way to plan and secure your bus travel.

rPool (Bikepool & Carpool): Share rides with others through rPool, which includes both bike and carpooling options. This helps in cutting costs and contributing to environmentally friendly transportation.

rYde: Book taxis or cabs for your travel needs. This service adds an additional option for convenient and on-demand transportation.

redRail: redBus expands its services to train travel, allowing users to book train tickets through the redBus platform. This provides travelers with more choices for planning their journeys, beyond just bus travel.

redBus aims to provide a comprehensive suite of transportation services catering to various preferences and needs, from bus and train tickets to ride-sharing and taxi options.

Target Audience Of Redbus:

redBus aims to attract people who want to book bus tickets online instead of going to a physical counter. They focus on providing customer support, discounts, and other benefits that you might not get at a traditional bus counter. Their target audience is those looking for a simple and convenient way to plan and book bus trips.

Business Model Of Redbus:

redBus earns money by taking a commission on each bus ticket sold, around 10-20% of the ticket value. They also get a commission from the bus operators.

Apart from ticket booking, redBus provides hotel services and offers discounts. What makes redBus stand out is that customers can pick their preferred route and seat on the bus, giving them more control over their journey.

What Is Unique About The Business Model Of redBus?

redBus stands out by focusing on excellent customer service. Their social media strategies are designed to offer great deals based on customer preferences. Some unique features include:

  • Bus Tracking: Customers can easily track their buses for a better travel experience.
  • Rating-based Booking: Customers can choose buses based on ratings, making informed decisions.
  • Reserved Seats for Women: redBus prioritizes safety by setting aside seats specifically for women.
  • Customer Feedback: Customers can share their thoughts on services and experiences, helping redBus improve.

redBus’s dedication to customer satisfaction and useful features make it different in the online ticketing industry.

How Does Redbus Make Money?

redBus makes money by charging a commission from bus operators for each ticket booked, usually 10-20% of the total ticket value. In 2019 redBus earned $85 million in revenue. As of 2020 the company is valued at $710 million and has over 36 million users worldwide. It’s recognized as the largest online bus ticket company working with 3500 bus operators.

Wrapping Up:

redBus has faced ups and downs since it started in 2006. It provides bus services around the clock, meeting the needs of many travelers. It’s simple and strong business model makes it widely popular among ordinary people.

redBus solves the problem of finding the right bus for any destination, making travel easier. It aims to fulfill all the needs of travelers, becoming an inspiration for creating services that benefit everyone.