redBus Business Model - How Does redBus Make Money?

Pratyusha Srivastava Pratyusha Srivastava Abhinav kumar Abhinav kumar
Oct 21, 2022 4 min read
redBus Business Model - How Does redBus Make Money?

redBus is India’s first organized bus ticket booking service and the biggest aggregator of bus tickets. It has been received very promptly by the Indians. India being the 5th largest contributor to the world's GDP, aims to take the travel and tourism industry to $250 billion by 2030 and $1 trillion by 2047.

Companies like redBus put their immense contribution towards making the journey of travellers very convenient and safe. redBus' contribution has taken the travel and tourism industry to great extent. Let's look at the business model of redBus and understand its complete operations.


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With all the buzz that the millennials have with traveling and easy bookings, we had to have the online booking portals that are easy as a button. Today from airfare booking to bus booking, we have all arrangements for easy and fast online booking. One such company that revolutionized the

About redBus
Where Does redBus Operate?
Key Services of redBus
Target Audience of redBus
Business Model of redBus
What Is Unique About The Business Model Of redBus?
How Does redBus Make Money?

About redBus

redBus is India’s largest online bus ticketing platform headquartered in Bangalore and owned by Goibibo. It provides a ticket booking facility through its website, iOS, and Android mobile apps and connects bus travellers with a network of over 2500 bus operators.

For better guidance, the company joined the TiE Entrepreneurship acceleration program where they got the guidance of great mentors.

redBus was the first of its kind and no doubt, it came out radiantly. Today, it sells more than 18,000-20,000 tickets per day. The company has two subsidiaries YourBus and Empresa Digital Peruana S.A.C.

Where Does redBus Operate?

Till now, redBus has served more than 18 million people across the world. Outside India, redBus also has a strong foothold in many countries :

Countries where redBus operates:

  • Colombia
  • India
  • Indonesia
  • Malaysia
  • Peru
  • Singapore

Key Services of redBus

redBus offers a secure and manageable experience for booking tickets online. Moreover, it offers complete choices to the customers such as choosing their destination with their preferred seating options. redBus not only works in the roadways domain but recently enters into the railway domain under the name of redRail.

List of services provided by redBus:

  • Bus Hire
  • Bus Tickets
  • rPool (Bikepool & Carpool)
  • rYde
  • redRail

Target Audience of redBus

redBus generally target audiences who want to book a bus ticket without going to the physical place to buy a ticket. This concept of redBus is made to acquire its consumers by providing customer support, discounts, and other perks which are impossible to get at the physical bus counter.

Business Model of redBus

The business model of redBus is very strong along with its digital marketing strategies. redBus' business model is straightforward, as it charges a commission on every bus ticket booking. It also charges a commission from the bus operator on every ticket booked through its platform. The commission is approximately 10-20% based on the value of the ticket being sold.

redBus also provides hotel services along with ticket booking. It offers great deals on various occasions and also offers special discounts as well. But, the most advantageous factor that comes with RedBus is that it provides an opportunity for the customer to choose the most favourable route to their destination with the best seat in the best bus.

What Is Unique About The Business Model Of redBus?

Its business model is entirely based on its quality service to the customers. Its social media strategies are designed so well that it always finds great proposals for its audiences. It mostly keeps on promotion but that too, on customers' demands and favours.

Some of the features that make it unique are:

  • Customers can track their buses.
  • Customers can book buses according to the ratings.
  • There are reserved seats for women.
  • Customers can give feedback on the services provided and their experiences after the trip.

How Does redBus Make Money?

redBus makes its money by charging some fee as commission from the bus operators on each booked ticket on redBus. The commission comes as 10-20% of the total ticket value.

In 2019, redBus received great success, it had annual revenue of $85 million. The company has a valuation of $710 million in 2020. Now, it has over 36 million users from all over the world with 3500 bus operators according to the data given on its website. And known as the largest online bus ticket company.

Conclusion

redBus has gone through lots of success and failure since its launch in 2006. There are tons of bus services available 24×7 to meet all the needs of travellers. Its business model is quite simple and strong but most importantly, redBus is widely famous and welcomed among the common people.

redBus eases the major issue of finding the correct bus for any destination. It's one step closer to fulfilling every need of a traveller along with destination travel requirements. redBus is one of its kind and it's a true inspiration for developing services for the betterment of common people.

FAQs

What is redBus?

redBus is an online bus ticket booking platform from Phanindra Sama, Charan Padmaraju, and Sudhakar Pasupunuri in 2006.

What are the subsidiaries of redBus?

redBus has two subsidiaries YourBus and Empresa Digital Peruana S.A.C.

How much commission does redBus take?

redBus charges a 10% to 20% commission on the value of the ticket.

Which company owns redBus?

The parent company of redBus is Goibibo.

Who is the founder of redBus?

Phanindra Sama, Charan Padmaraju, and Sudhakar Pasupunuri founded redBus in August 2006.

Did Ibibo Group acquire redBus?

Yes, redBus was sold to Ibibo Group for $138 million.

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