Buses, Autorickshaws Most Popular But Least Online-Disrupted Transport Modes
“Disruption for these modes will come not so much from the online disruption of buses and autos themselves, but more from offering substitutes at similar price points like online bike taxis (private or shared) as a substitute for buses or carpooling as a substitute for autos (something which has already been fairly successful already)”
RedSeer Consulting research reveals a significant amount of innovation needs to happen to drive online bookings for mass/low-ticket size transport modes like buses and auto-rickshaws. RedSeer research shows that in spite of the strong growth in online taxi aggregation market, barely 2 per cent of all local public transport trips in metro cities (excluding metro and commuter rail) are booked online. The most commonly used transport modes like autos and buses are booked approximately 99 per cent offline owing to high convenience and availability of offline modes. Only the local point to point cabs market has shown signs of strong online disruption with more than 35 to 40 per cent of trips booked online.
Thus there is a tremendous potential for online disruption in the bus and auto space, something which startups like Zipgo, Jugnoo, and the rest have tried to capitalize on and bigger players like Ola (Ola Shuttle) and Uber have also realized. However, direct online disruption of these mass transport modes may be a slow process owing to strong competition from offline. Rather, disruption should happen by offering substitute transport modes at a similar price point.
Commenting on the finding of the research, Anil Kumar, CEO, RedSeer Consulting said, “While the online disruption of the taxi market has been quite successful, companies need to still figure out innovative ways to disrupt the mainstream transport modes like buses and autos. Disruption for these modes will come not so much from the online disruption of buses and autos themselves, but more from offering substitutes at similar price points like online bike taxis (private or shared) as a substitute for buses or carpooling as a substitute for autos (something which has already been fairly successful already).”
RedSeer Consulting is a research and advisory firm launched in 2009. Headquartered in Bangalore, RedSeer deals in in market facing, research based and consulting engagements. It claims to be one of the fastest growing advisory firms with over 150+ clients. The company works across multiple verticals with expertise in the consumer internet space.