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CASE STUDY ON RED BUS ONLINE TICKET BOOKING SYSTEM

Presented To :
Prof. Rajveer Singh Faculty IMS Ghaziabad

Presented By :
Javed Akhtar BM-010066

IMS GHAZIABAD LALQUAN

Introduction:
Started in August(18th) 2006 CEO: Phanindra Sama(Phani) Industry: Online Bus Ticketing 7000 operators with 10,000 routes and with an

inventory of 5,00,000 tickets covering more than 2500 cities over an expansion of 16 states Profitable since December 2009 5000-6000 own travel agents making 75000 point of sales for Redbus 20% sales growth on monthly basis $30 million Turnover currently

Idea Generation for Redbus


Centralized the ticketing system Inventory management system for Operators No
aggregation of Bus Tickets like Global Distribution System which is prominent in Rail Ticket and Airlines Ticket Booking manual bookings in the buses of few operators fares of buses

Much dependency on the Travel Agents who do

Very little transparency regarding availability and


India 4th largest user of Internet(81 million) after
China, America and Japan

Process in Building of Redbus


The Redbus Founders Joined EAP (Entrepreneur
Acceleration Programme offered by TiE

Redbus was among one of the three ideas


selected out of 300 ideas for mentoring approached Redbus

Due to this various Venture Capitalists


Kiran Nag (VP-SVB Indian advisors),Ashok
Yerneni and Sanjay Anandaram appointed mentors in July 2006 and potential of this fragmented market

They selected Redbus due to Teams Passion

Cont
At initial stage they divided their work
Market survey Identifying customer Preferences Gathering Market Data Spread awareness through pamphlets, personal
visits and visiting cards
their service

Introduced and Convinced the Operators about

Contd
Studied Books for web Development and
programming for core knowledge about their business
consideration the nature of business and threats

They didnt hired a web developer taking into the Finally started with just one operator

Problems Faced :
Non-IT Background of the founders

Wait for operators for hours


While receiving calls, harassed and abused
several times portal

No Bank was ready to provide payment gateway Operators were still relying more on traditional
way of ticket distribution agents

Lack of internet knowledge among operator and

Industry And Competition


1970s-1980s Growth Phase

US $ 3Billion Industry, 2000 private Bus


operators, 20000 buses of long route (Contract carriages)

Income has increased and Road conditions have


improved resulting into growth in AC coaches (like- Volvo, Mercedes)

Expecting growth of 40% in next 10 years

40% air tickets and 30% Rail tickets sold online


Online moved to7% to 25% while Traditional
agencies from 32% to 10% market share

Fund Raising:
Seedfund invested US$ 500,000 and by this,
Bharti Jacob became a member of Redbus board Which was Spent in one and a half years due to Redbus robust growth
$700,000 from Inventus Capital, Helion and Seedfund in which redbus raised $2.5 mn like Hydrabad, Ahmedabad Delhi,Pune,, chennai

In 2008, it went for another round of funding of

This was utilised for establishing offices in cities

and

Revenue Model
Average sales of 5000 tickets Daily

Commision is 10%
Home Delivery in 10 cities on a premium of $0.5 Sales Break up : Booking Online: 60% Call centres:30% (7 call centres with 20-25
employees in each)

Partner channel:9% Mobile:1%

Reason Behind Success:


Innovation
Operational Efficiencies Excellent Customer service

Adequate usage of IT
Division of Labor Good Mentorship Dedication Untapped and Fragmented necessity driven Market

Simple Business model with good work Ethics

Cont
Aggregration capabilities

Win-win situation for all three:Operators, Agents


and Redbus

Portal transparency which built trust Honesty and ethics Cost Efficiency

Conclusion
With innovative approach and right
implementation of technology accompanied with hard labour has brought success to Redbus.

THANK YOU