redBus Taps ONDC To Offer Metro, Auto Rickshaw Bookings

In an effort to boost first and last-mile connectivity for travellers, online bus ticketing platform redBus has joined hands with Open Network for Digital Commerce (ONDC) to offer multi-modal transport booking services across various cities.

With this integration, redBus will now provide metro ticket booking facilities in Kochi and Chennai. Besides, users can now also book auto-rickshaws through the app in Bengaluru, Delhi, Chennai and Hyderabad. This follows technical collaboration with Juspay which supports integration with ONDC APIs.  

Moreover, Chennai and Kochi-based redBus app users can now easily book metro tickets. To be sure, Chennai and Kochi have 2.6 Lakh and 90,000 daily metro travellers, respectively.

“ONDC is a multi-force enabler in India and we are pleased to be working with them to provide user convenience while promoting a diverse range of choices. ONDC’s commitment to transforming the ecommerce network aligns seamlessly with redBus’ vision of a digital India,” said Prakash Sangam, chief executive at redBus.

“Our larger goal is to promote e-commerce adoption while simultaneously boosting the growth of start-ups, and creating a conducive environment for businesses to grow. Our work with redBus will not only reinforce our dedication to this ethos but also bring forth a shared vision of mobility that transcends traditional mobility solutions” said T Koshy, MD and CEO at ONDC.

It is pertinent to note that ONDC had already forayed into the mobility segment by onboarding Bengaluru-based auto booking app ‘Namma Yatri’ on its network.

Founded in 2006, by Phanindra Sama, Sudhakar Pasupunuri and Charan Padmaraju, redBus quickly grew into one of the largest online bus ticketing platforms.

In June 2013, ibibo Group, a joint venture between South Africa’s Naspers and Chinese Internet company Tencent, acquired a controlling stake in redBus, valuing it at about $140 Mn (INR 800 Cr).

Now part of the MakeMyTrip group, the company has 75% market share of the overall bus ticketing business in India in 2019, up from 70% in 2018, according to Sangam. In January 2018, redBus also partnered with Flipkart-owned payments player PhonePe. 

redBus also launched operations in Singapore, Indonesia and Malaysia in 2015 and acquired a majority stake in Peru-based bus ticketing platform Busportal (now redBus.Pe) in the subsequent year. With this acquisition, redBus successfully launched operations in Latin America markets, Peru & shortly thereafter, Colombia. 

India bus market’s revenue is poised to hit $1.05 Bn in 2024. It is expected to show an annual growth rate (CAGR 2024-2028) of 4.03%, resulting in a projected market volume of $1.23 Bn by 2028, as per the research firm Statista. 

The ONDC platform, backed by the Department for Promotion of Industry and Internal Trade (DPIIT), was launched in the latter half of 2022. It is an open network aimed at unbundling the existing closed network of digital commerce and enabling small businesses to participate in the space.

The likes of Delhivery, Paytm, Phonepe, IDFC Bank, Kotak, Shiprocket, Dunzo, and, most recently, Tata Neu have integrated some of their services with the ONDC.

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.