"Over the next four years, the Bengaluru-headquartered firm is expecting to derive 25 per cent of its revenues from government transport corporations, as compared to 9-10 per cent as of now." said Prakash Sangam, Chief Executive Officer of RedBus.
Despite the online travel booking in the country seeing a huge surge in the past years, the corporations rely heavily on offline ticket booking that accounts for 90 per cent of their business. RedBus, which has tied up with 22 such corporations, is pushing to make further inroad into this segment by offering technology solutions for monitoring of the fleet and passenger safety in addition to the core inventory management platform.
The company plans to engage with the Karnataka State Road Transport Corporation and the Punjab State Bus Stand Management Company to bring them on its platform. According to Aryaman Tandon, Director at Praxis Global Alliance, India’s bus transport market stands at $100 billion. “Players like RedBus have a significant opportunity at hand not only for booking but many other business opportunities within the road public transportation segment,” he said.
About three years ago, when MakeMyTrip was in talks to merge with the Ibibo Group, the idea was to consolidate operations in the online accommodation booking space.
RedBus, which was part of Ibibo, was also brought on board to be a part of this three-dimensional combined entity as Nasdaq-listed MakeMyTrip saw it as a complimentary product to the travel and hotel bookings space. RedBus, which had higher volume of transactions than the combined MakeMyTrip and Ibibo, was growing 25 per cent year on year.
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