KUALA LUMPUR: Rural areas, tier-two and tier-three towns have significantly contributed to redBus’s growth as the digital ecosystem expands across Malaysia, said the online booking platform’s chief business officer for international business, Krishnan Ramaswami.
He said redBus’s gross merchandise value (GMV) in Malaysia grew by 40% last year, reflecting the value of tickets sold.
“A lot of growth has come from the northern territories of Malaysia and tier-two and tier-three towns, demonstrating how people in the hinterlands are embracing digital technologies,” he said in an exclusive interview with SunBiz.
Krishnan disclosed that the Covid-19 pandemic recovery period of 2022-2023 positively impacted the company, with redBus’s GMV increasing by nearly 120% compared to pre-pandemic times.
Initially an online bus ticket booking platform, redBus has since expanded into ferry ticket sales and other services.
“redBus has started selling activities, allowing people to book various activities in Malaysia and plans to expand this booking service into Singapore, which will further drive the company’s growth,” Krishnan said.
He said redBus offers an enhanced feature that enables users to add activities at their chosen destinations after purchasing a ticket.
Krishnan emphasised the importance of collaborations and partnerships for the company’s expansion, particularly with ferry operators. Currently, redBus collaborates with around 170 ferry operators globally.
“This number is growing, and the collaboration is deep. redBus is not just a connecting platform but also supports the supplier ecosystem by offering tools to operators, such as handling ticket cancellations, which can be challenging to manage manually.”
Krishnan said redBus’s flexible cancellation system is a key technological advancement. The company is also implementing QR code technology.
“redBus has made ticket booking entirely digital, with users receiving a QR code via email. The company also provides live bus tracking, enabling customers to know the exact location of their bus, which is particularly helpful for managing boarding times in rural areas and tier-two and tier-three towns,” he added.
Commenting on the economic impact of digital platform business models on the travel industry, Krishnan said redBus aims to increase bus patronage wherever it operates.
“redBus promotes buses as a viable mode of transport for users who might not have considered it before. As the industry expands, new operators can enter the market easily since there are no upfront fees, only a commission based on ticket sales, which lowers entry barriers.”
Looking ahead, Krishnan said that as Malaysia’s digital ecosystem continues to grow, redBus is embracing mobile technology for more use cases. The expansion includes new business lines.
“Regions like Sabah and Sarawak, where the digital ecosystem is rapidly growing, will be key areas for redBus’s expansion and pillars of growth in the future. The company is also enabling international bus and ferry routes, allowing users to explore destinations like Hatyai in Thailand and Batam in Indonesia.”
To ensure sustained growth, Krishnan said, redBus is balancing both sides of users and operators with new recommendations.
“For operators, redBus gives them innovative pricing solutions where they can customise pricing for different segments of users, so that they can maximise the revenue but at the same time, see that they fill their buses up, where it also benefits users as they will get the best pricing at any point of time,” he added.
Source: The Sun Daily
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