Skift Take
To meet the demands of India’s mobile-first consumer economy, the ground transportation sector is undergoing a significant digitization boom. A shift that reflects broader trends in how people prefer to navigate their journeys.
In the latest episode of the Skift India Podcast, Asia Editor Peden Doma Bhutia is joined by Prakash Sangam, the CEO of bus ticketing platform RedBus, as they discuss the current state of India’s road transport sector. They explore post-pandemic changes in road transport, driven by both technological innovations and changing consumer behavior. Find out why India’s vast network of roads, trains and buses serve as a lifeline for many travelers.
Key Points
Road Travel Dominates in India: Of 100 travel occasions, only 5% involve air travel, while 95% happen on the ground. About 65% of trips occur on the road and 30% by rail, underscoring the importance of road and bus travel in India’s travel landscape. However, media attention disproportionately focuses on air travel due to its organization and regulatory frameworks.
Government Initiatives Boost Bus Travel: The development of expressways and highways, doubling road length in the past decade, and the introduction of the all-India tourist permit have reduced operational costs for bus operators and enhanced route flexibility, encouraging more bus travel.
Post-Covid Digitization: The pandemic has accelerated digital adoption, with nearly two-thirds of RedBus bookings now originating from Tier-2 and Tier-3 cities, up from a 50-50 split between metro and non-metro regions pre-Covid.
RedBus Platform and Service Quality: As a marketplace, RedBus ranks operators based on customer ratings, influencing better service and fleet quality. Bus operators have increasingly invested in newer buses and better interiors, improving the overall passenger experience.
Technological Innovations: GPS tracking, live bus locations, and mobile alerts have enhanced the convenience and safety of bus travel. Operators also benefit from technology in terms of fleet management, curbing speeding, and managing route deviations.
Women-Friendly Initiatives: RedBus has introduced a “women booking mode,” providing enhanced safety features like helplines and women-centric reviews, encouraging more solo female travelers.
Expanding Connectivity to Remote Regions: RedBus has partnered with transport corporations in remote areas like the Northeast and Jammu & Kashmir, providing seamless bus connectivity and helping promote tourism in less-accessible regions.
Revenue Model and Value-Added Services: RedBus earns primarily through commissions on ticket sales and offers value-added services like loyalty programs and free cancellations to benefit both operators and passengers. These services boost platform loyalty and encourage advance bookings.
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Episode Summary
In this episode, Prakash Sangam, CEO of RedBus, discusses the untapped potential of India’s road transport sector, highlighting how ground travel dominates 95% of the country’s travel, with buses accounting for 65%. Despite disproportionate media focus on air travel, bus and rail networks serve millions daily. Sangam explains how the sector has evolved post-pandemic, fueled by infrastructure investments such as new highways and streamlined permit systems. This has reduced operational costs and expanded bus routes nationwide. Digital advancements have further accelerated bus travel, with a surge in bookings from tier-2 and tier-3 cities, now comprising two-thirds of RedBus’ total bookings.
Sangam also underscores RedBus’ role as a marketplace connecting operators with passengers, improving service quality through customer ratings, real-time tracking, and women-specific travel features. This digital transformation has enhanced passenger experience and boosted confidence in bus travel. As a result, women’s solo journeys have increased significantly, comprising 40% of RedBus’ female passengers.
