35 minute read
Last-Mile Cargo Solutions
N New LAuNch
lasT-mile cargo soluTions
Advertisement
omega Seiki Mobility has partnered with Valeo india for last-mile cargo solutions. Prateek Pardeshi looks at the scope of the partnership involving the rage+ and rage+ Frost three-wheeler, cargo range.
Small Commercial Vehicles (SCVs) are in vogue! Preferred for inclusion by fleet operators for last-mile delivery, they are also the flag-bearers of all-electric drives. Omega Seiki Mobility (OSM) has a strategy in place to exploit this trend to its advantage. For it to be successful, it has zeroed in on a technical partner in Valeo India (Valeo). The latter will collaborate to build a powertrain especially suited to the duty cycles of three-wheelers aimed at cargo transportation. OSM, part of the Anglian Omega Group has signed a Memorandum of Understanding (MoU) with Valeo to source the company’s electric powertrains for the ‘Rage+’ and ‘Rage+ Frost’ range. The two partners aim to deliver on the carbon emission reductions through the collaboration.
48V E-POwERTRAIN
The 48V electric powertrain system manufactured at Valeo’s Pune plant, is known to constitute a reducer, an integrated motor and an inverter to go along with the Powertrain Control Unit (PCU) for OSM’s cargo threewheelers range comprising of ‘Rage+’ and ‘Rage+ Frost. The vehicles under the Rage+ brand, for instance, have already been deployed by several major ecommerce and
Dr Deb Mukherji, Managing Director at Omega Seiki Mobility Mr. Uday Narang, Chairman, Anglian Omega Group and Omega Seiki Mobility Jayakumar G, Group President, Valeo India
logistics companies in India.
“We are thrilled to partner with Valeo. This association will allow us to address the core issue of reducing carbon load in the atmosphere, along with providing a sustainable solution for our product line-up,” stated Uday Narang, Chairman, Omega Seiki Mobility in the company release.
Rage+
Rage+ three-wheeler cargo vehicle with a Gross Vehicular Weight (GVW) of 0.96-tonne and an open carrier box offers a range of 70-80 kilometres on a single charge as per company claims. It translates to a running cost of 0.50 rupees per kilometre. Powered by an IP65 certified 7.5 kWh battery pack with a battery swap option, the vehicle is claimed to be charged in a period of three to four hours using a fast charger. Range+ customers can look forward to a battery life of 2,000 cycles coupled with a three-year or 80,000 km warranty. On the safety front, customers can look forward to inclusions like regenerative braking, roller-cage support structure keeping in mind driver safety, a superior strengthened chassis claimed to be suited to Indian road conditions, and hydraulic braking. Heavy-duty shock absorbers that include a damper plus helical support the front skeleton.
The rear gets independent suspensions and dampers too. The company also offers a reefer variant christened ‘Rage+ Frost’ unveiled earlier this year and aimed at
pharmaceuticals and food delivery aggregators.
GO-TO-MARkET STRATEGY
The go-to-market strategy of this collaboration entails Valeo offering quick charging and an efficient range. It also entails keeping the Total Cost of Ownership (TCO) low to maximise operator Return on Investment (RoI). To deliver on its promise, Valeo will fall back on its globally tested 48V affordable systems, known to have been launched in 2020. It expects the fully integrated compact 48V electric powertrain system to aid in OSM’s requirement of building affordable small electric commercial vehicles. Besides three-wheelers, the scope of the MoU extends to two-wheelers aimed at both the first and last-mile connectivity requirements pan India. Going beyond the current scope, Valeo and OSM will further collaborate for the latter’s upcoming vehicle models to be manufactured in India. “OSM is taking a holistic approach to not only provide innovative technology in the vehicles but also deliver high-performance vehicles at reasonable running cost through the claimed, state-ofthe-art internal research and development and alliances put in place,” opined Narang.
OSM is looking to leverage its partner Valeo’s expertise deemed suited to the target segment of small commercial vehicles. Averred Jayakumar G, Group President, Valeo India, “Omega Seiki will benefit from our deep understanding of not only the electrification technologies but also the
RAGE+ Specification
RANGE
Cost of Running
Battery
Charging time 70-80kms in Single charge
0.50/km Rupees
7.5kWh with IP65 Certification
3-4hrs on a Fast Charger
(GVW) Gross Vehicle Weight 0.96 Tonne
Battery Life 2,000 cycles with 80,000kms & 3-yr warranty
Features
Regenerative Braking, rollercage support, a strengthened chassis and hydraulic braking. Suspension Front and the Rear get heavyduty shock absorbers & damper plus helical for the front and independent suspensions and dampeners at the rear
unique needs of integrating electric powertrain in the small mobility format of vehicles.” “I am positive that Valeo’s advanced technologies, our strong engineering combined with manufacturing expertise in India will help us to strengthen our partnership and succeed together in this rapidly growing segment,’ he stated.
While Valeo’s engineers look to provide the technology integration support aimed at helping OSM accelerate the execution of its go-to-market strategy it is expected to lead to faster commercialisation of the product offering. About the technology used by OSM for their vehicles to be coupled with the Valeo e-powertrain, added Dr Deb Mukherji, Managing Director at Omega Seiki Mobility, “With a global technology leader like Valeo on board, we would be providing our customers with new generation powertrains which are efficient, use latest technologies in motors, electronics and IoT, and at the same time are cost-effective too.” “That is the essence of any disruptive technology. We are very excited to be working with Valeo to introduce a new range of powertrains in the Indian market,” he concluded.
over storyC
making buses smarTer and safer
The stakeholders of the bus ecosystem are leaving no stone unturned to make buses smarter and safer. Ashish Bhatia looks at some of the inclusions expected to drive the recovery of the segment.
In the pre-Covid19 days, the new-age bus aggregator and operators plying the luxury coach were expected to look at out of the box inclusions from a technology, safety and comfort perspective. It was to justify the per seat occupancy cost levied on the passenger. Fast forward 16 months and the world has changed. Inclusions that were directly correlated to the per-seat occupancy cost, implying, a higher ticket cost must translate to greater value additions from the fleet operator. It is of utmost priority to convince passengers to consider buses as a smart and safe option for their transportation needs. It’s a sign of a maturing market and a testimony to the supply side reacting to the market pull in a bid to stay relevant. Not just in India, this phenomenon is a trend globally.
SMART AND SAFE BuSES
It all started with the need to ensure social distancing and prevent the transmission of Covid19. In the break the chain phase, Original Equipment Manufacturers (OEMs) together with the stage and contract carriers have been forced to reimagine their product and service offerings. OEMs are seen taking the erstwhile concept of fully built buses to the next level. For example, Daimler India Commercial Vehicles has equipped its entire BharatBenz fleet with Covid19 safety features. In a press release, states KarlAlexander Seidel, Chief Executive Officer and Head of Daimler Bus India, Daimler India Commercial Vehicles, “In response to the need of the hour, our BharatBenz bus fleet offers innovative solutions to mitigate virus transmission. These vehicles address people’s apprehensions towards public transport by offering reassuring features in line with Covid19 safety and hygiene protocols.”
The new additions include a range of features that are claimed to help prevent the spread of infection. The OEM, to ensure minimal surface contact, has equipped buses with a pneumatic door and hands-free sanitiser. It has also provided a hands-free temperature sensor and foot-operated trash can onboard. In the case of a passenger boarding with a temperature over 100 degrees Fahrenheit, provision has been made to alert the driver. It will also trigger a buzzer sound. In addition, the bus entrance has been furnished with disinfectant mats to clean viruses and dirt off the feet of the onboarding passengers. BharatBenz ‘BSafe’ badged buses come with two seat cover options. Out of the two, one is an infection-proof cover that retains its anti-virus and anti-bacterial protection for up to 20 washes. The second cover is an easy-to-use disposable cover for passengers who want to avoid sitting on seats previously occupied and prefer a one-time use seat cover.
The bus also comes with an Ultraviolet (UV) filter and an air circulation kit. The UV lamp is claimed to kill up to 99.6 per cent of airborne viruses while the air circulation system is said to secure ventilation of fresh air from the outside. The inclusion is said to provide an extra layer of protection against any virus which may have entered the bus despite safety precautions.
For driver safety, a glass partition has been placed between the driver’s cabin and the passenger cabin. The
Karl-Alexander Seidel, Chief Executive Officer and Head of Daimler Bus India, Daimler India Commercial Vehicles Rohit Srivastava, Vice President, Product Line – Buses, Tata Motors Vipin Sondhi, Managing Director and Chief Executive Officer, Ashok Leyland Anuj Kumar Sethi, General Manager - Marketing of SML Isuzu
driver additionally will be provided with a Covid19 safety kit consisting of N95 masks, disinfectant sprays, hand sanitisers, besides anti-bacterial wipes to meet the cabin cleanliness requirements. Commuters can look forward to seeing trash cans placed in the bus. These cans will be designated for waste disposal and be supported with informative posters with safety do’s and don’ts. “By equipping our products with ‘BSafe’ features such as hands-free doors, sanitiser and temperature sensors, we aim to revive the demand for passenger buses in India,” ‘states Seidel.
Tata Motors, recently delivered 35 Starbus electric buses, as a part of the larger order of 340 electric buses to Brihanmumbai Electric Supply and Transport (BEST). The 12-metre long, 35-seater Tata Starbus AC electric buses are equipped with advanced features for the comfort of the driver and the passengers. For instance, the OEM has provided a ‘Lift Mechanism’ that extends an automated ramp for easy ingress and egress of specially-abled passengers, along with ergonomic seats, roomy interiors, utility provisions like charging ports and wide entry and exit passages. These buses are equipped with Intelligent Transport System (ITS), telematics system, regenerative braking system, amongst other features for efficient and smooth operations. In a press statement, Rohit Srivastava, Vice President, Product Line – Buses, Tata Motors mentions, “The unique ‘One Tata’ initiative will leverage the core proficiencies of various Tata Group companies to offer the best comfort, performance and low cost of operations. The buses are equipped with modern features that will enable ease of use and offer comfort and convenience with roomy interiors and ergonomic seats.”
In another example, Haryana roadways resumed its bus service between Gurgaon and Agra in Uttar Pradesh where Volvo buses are among buses in the fleet. It hints at an uptick in inter-state public mobility as well. An hour before the departure, a sanitisation drive will be carried out and passengers will be called in early to avoid any overcrowding. Through the CampX facility in Bengaluru, which is used to spawn new business ideas and collaborations, the Volvo Group’s thrust areas include the development of new commercial transport solutions. At the group level, expect new solutions from the company to fructify since the business transfer agreement with Volvo Eicher Commercial Vehicles (VECV). VECV, on the other hand, continues its thrust on offering a wide range of transport solutions through the Eicher Starline and Skyline range of buses. The OEM is known to have delivered 50 units of 24-seater Eicher CNG buses to Pune Mahanagar Parivahan Mahamandal Ltd (PMPML). All the buses are equipped with the Eicher Live Telematics Solution linking back to the Eicher Uptime centre.
SML Isuzu is banking on its Hiroi SLTHT6 series of school and staff buses. Spacious saloon with wide gangway and full-length hatracks, anti-bacterial laminated fire redundant upholstery, school bag racks are among the standout features. Mahindra Truck and Bus, in its Cruzio bus, for instance, is banking on wider seats and spacious gangway, roomy interiors, wider doors for easy entry and exit, child check-mate feature and iMAXX for tracking the bus as inclusions to meet the demand. Besides, the bus is claimed to adhere to all safety features prescribed by the Regional Transport Office (RTO).
DRIVING DEMAND
Higher budget allocation towards fleet upgradation will drive the demand going forward according to Vipin Sondhi, Managing Director and Chief Executive Officer, Ashok Leyland. The demand is further expected to be bolstered with schools reopening in states like Maharashtra by the mid of August 2021. Safety features in school buses will assume significance and hence manufacturers and operators alike are working in the direction ahead of operations commencing. Bus sales are known to have dropped from 80,000 units pre-Covid to 15,000 units in FY2021. In the first quarter of FY22 (Q12022), the industry has sold an estimated 5,000 units. Admitting to not requiring an addition to capacity till the time the segment recovers to pre-Covid levels, the industry is all for making buses smarter and safer.
helping bus operaTors bounceback
Bitla Software is offering a solutions suite with proven functionality to its customers. Ashish Bhatia looks at the value proposition aimed at helping bus operators stage a strong recovery after a tough fiscal year.
Karnatakaheadquartered Bitla Software Pvt. Ltd. (Bitla) is staying true to its genes. The 14-year old
Software as a Service (SaaS), cloud and mobile-based solutions company continues to simplify solutions for bus operators across India and the globe. In a pandemic marred tough fiscal year 2021 for the bus operators, the company has left no stone unturned.
Through its solutions portfolio it is helping bus operators bounceback. To help bus operators recover and get back to profitability, it is productising proven solutions tested by staying close to its customers, the bus operators themselves. Averred Santosh AR, Chief Executive Officer at the company, who took over the mantle from his predecessor two years ago, in 2019, “Right from the initial years, we were focused on the bus operators, and especially the private sector and for the long haul. So we are a Business to Business (B2B) technology company who happened to have insights on the bus operations, sheerly due to the number of years we have invested in getting to know our customers. So we haven’t made any changes to that approach.” Under his able leadership, the company has strengthened its technology platform and is diversifying to new segments and markets.
SIMPLIFYING BuS SOLuTIONS
Acquired by MakeMyTrip, Bitla is a well-oiled and wellfunded company. The online travel company acquired Bitla, in 2018. At that point and time, the milestone acquisition was looked at as a development that would enable the company to rapidly develop and expand its suite of travel focused technology products. Today, the company, remains deeply committed to solving real industry problems while providing exceptional service to customers. No wonder then, as per Santosh, the company commands a
50 per cent market share in its segment. “We have been aggressively acquiring new operators who are sprouting out in the market. Nearly 75 per cent of the new operators, including the new age bus operators with the aggregator business model have started their business using the Bitla software.” According to Santosh, the company is well differentiated from its competition, focused majorly on the Western and the Southern regions, giving the company an edge with its pan India operations at a domestic level, in comparison.
The solutions suite of Bitla comprises a flagship product in ‘TicketSimply’. ‘SimplyBus’, and ‘CargoSimply’ being the other products on offer for bus operators. Of these, ‘TicketSimply’ caters to the passenger segment and provides technologies for bus operators with a Central Reservation System (CRS) for managing routes and schedules, tariffs and commissions, branches and agents, bookings and passengers, security and controls, finances among others. It also helps operators to manage bus Global Distribution System (GDS), bus portals, website Content Management Software (CMS) system, and the booking engine and payments platform. Bus operators also stand to benefit from the branded mobile app. builder platform. Among other utilities are business intelligence and analytics, sales and marketing with campaigns, GPS tracking and passenger alerts functionality. “A small subset of it is the cargo segment, although it’s not our main focus segment,” clarified Santosh.
Besides helping with tracking, the product also helps with geo-tagging based value-added services. Geo-tagging is the process of appending geographic coordinates to media based on the location of a mobile device resulting in B2B companies like Bitla offering location-based add-ons. Through ‘SimplyBus’, Bitla helps bus operators to distribute their inventory to agents. Operators in turn benefit from the new found access to agent networks on the bookings front. “We realise that bus operators need highly reliable systems, systems that are scalable, and which are extremely flexible for their operations,”
Santosh AR, Chief Executive Officer, Bitla Software Pvt. Ltd.
explained Santosh. Bus operators and all B2B network channels are brought under one platform, where they are known to help one another support their respective businesses. It is claimed to address all the requirements of a B2B network. In line with the productising of proven functions strategy, Bitla offers fully automated, day-today operations, promotions, collections, payments among other functionalities.
Through ‘CargoSimply’, Bitla is focused on bus operators who also run cargo operations. In a clear demarcation, the product is not focused on the mainline cargo, it is only focused on bus operators looking at cargo as a subset of their overall operations. The add-on to ‘TicketSimply’, is claimed to simplify bookings, operations, tracking and monitoring of goods that are to be delivered in real time. CargoSimply is said to enhance the way bus operators run their logistics businesses function, by improving operations and business management with the aid of technology. It helps bus operators to manage, process, and track a large number of goods across a range of routes. It is also claimed to
provide accurate data and generate reports on revenue while providing real time communication updates.
DIVERSIFYING SERVICE AND REACH
Drawing inspiration from bus operators, the company has strengthened its offerings, laying a foundation for product diversification and for expanding to new markets. Mentioned Santosh, during these volatile times, the company has taken care to align with the current priority of its customer which happens to be profitability. Hailing bus operators as “resilient entrepreneurs”, Santosh gave the example of nearly 80 per cent of the buses returning on the roads by June 2021 in spite of the seven to eight months of continuous lockdowns, and stringent restrictions on travel. The company is preparing to associate with new and emerging customers in relatively new spheres like bus cargo transportation. The segment, according to Santosh, is expected to draw investments with the fast improving connectivity and reach courtesy the government impetus on infrastructural development.
Opined Santosh, with access to more capital, and the production of smaller transportation vehicles introduced to the market, the smaller cargo players are expected to enter the segment too. He opined that these players would serve the tier 1 and tier 2 regions. Bitla expects new niche players to emerge as a result. Citing how bus operators have also started to explore new routes within their own states, the company expects to benefit from the tailwinds driven by the growth in operator penetration into these regions. Optimistic of the ecommerce bull run benefiting the bus industry too, Santosh made a case for the company’s expansion into global markets by citing the expertise built over the years in India. Confident of scaling it up internationally, the company is exploring channel sales partnerships in Africa where it is looking to appoint dedicated channel partners. These channel partners will in turn sell Bitla products and services locally. Once the pilot is successful, the company aims to expand it to Southeast Asia, the Middle East, among other markets where it sees a potential for its solutions. The company is also involved with aggregators in the business of transport ondemand and shared mobility wherein it has provided open access to its API kits for operators to build technology extensions and experiences for their users. Of the firm belief in scaling profitably, the company with a sustainable approach to business is closely watching the electrification of buses to align with the evolution. It is also banking on its strong foundation to associate with regional transport and the stage carriers.
over storyC c
PRODUCTISING PROVEN FUNCTIONALITy
Ashish Bhatia
Q. Take us through the evolution of the business model at Bitla Software since you took over as the Chief Executive Officer. Post the Makemytrip acquisition, what are the current focus segments for the company?
A. Bitla Software is a 14-yearold organisation. So my journey, of course, started only two years back. Right from the initial years, we were focused on the bus operators, and especially the private sector and for the long haul. So we are a Business to Business (B2B) technology company who happened to have insights on the bus operations, sheerly due to the number of years we have invested in getting to know our customers. So we haven’t made any changes to that approach. We have only ensured a greater focus on gaining technical expertise and utilising it for products as our core offerings to the bus operators. Our focus has been to productise our services, which will, in turn, help our customers to benefit from the proven functionality. We have sharpened our value system internally. To ensure everyone in the organisation is focused on helping the bus operators succeed. So much so that our revenue model is aligned with that value system. Our revenues are directly proportional to the revenues of our customers as a testament to our commitment.
products that you offer to this target group of bus operators? Any milestones or invaluable lessons learnt especially since you joined in a very challenging environment?
A. In the last 15 months, travel has been heavily impacted, just like many of the other sectors as we all know. The milestones have been replaced by goals for survival. And we have done that very well and will continue at it. In fact, times are changing for the good for us. For instance, we are hiring a batch of fresh graduates. We have used the last 15 months to strengthen our technology and internal support processes so that it helps our customers to come back stronger as they stage a recovery. So as far as our flagship products go, there are four products. The first is ‘TicketSimply’ which caters to the passenger segment. A small subset of it is the cargo segment, although it’s not our main focus segment. We help operators with tracking, which helps to track the location of buses and offers other value-added services related to their locations.
Through ‘AgentSimply’, we help bus operators to distribute their inventory to agents to in turn benefit from the agent networks on the bookings front. We realise that bus operators need highly reliable systems, systems that are scalable, and which are extremely flexible for their operations. These systems must always be available, and of course, usable by everyone in their
Industry Talk
organisation. So we have doubled up on our efforts during the last 15 months to ensure that our products are made to be reliable, simple to use, and extremely flexible. Because when our customers come back after a long period, they really are looking for these kinds of technologies to support their business to grow again.
Q. what is the lifecycle journey with different customer segments like? what are the different stages where you handhold them?
A. We handhold the customers right from the initial stages of onboarding. From the time we onboard them, we help them migrate their existing data onto our platform. This includes their passenger data, their routes, their data on Online Travel Agents (OTAs), besides other miscellaneous data that they may have to ensure they are up and running on day one of migration into our platform. And once they are on our platform, we open up all the sales channels. So they are enabled to sell their inventory, digitise sales inventory in various different forms, either through OTAs or through their own digital storefronts or at the agent’s end. Once they are able to sell, we also help them to ensure internal efficiency.
This could pertain to their workings across branches, and across accounting, internal processes or other bus operations. Things like the bus drivers being able to communicate to the admins or money collection from the agents. So we help them to ensure that our technologies on offer are adopted by all of them. While we ensure the smooth running of their business as usual, for instance, a well-oiled sales channel we also facilitate the use of big data to improve the overall efficiencies and thus their operations as a whole.
Q. How did business cycles perform over the past five to eight quarters? How did you compare to the competition in the same timespan?
A. We have a pan India presence well spread out across all the states. Through strategic partnerships, we have expanded to international markets like Indonesia, Malaysia, Chile, and Columbia. And soon we’ll also be getting into new markets like Peru and Nigeria. To give you a sense of scale, we serve around 1100 bus operators in India and around 300 domestic carriers in other countries. We used to serve about 15,000 active buses on our platform on a daily basis. So to answer your other part of the question, if you just leave aside the lockdown periods, right after wave one, and before wave two, from November 2020 to February 2021. Even after the second wave, in the month of June 2021. we’ve been aggressively acquiring
“In the last 15 months, new operators who are sprouting out in the market. travel has been heavily Nearly 75 per cent of the new operators, including the new impacted, just like many age bus operators with the of the other sectors as we aggregator business model have started their business all know. The milestones using Bitla Software. Yes, we do have competitors. have been replaced by However, not really at an all India scale. Our competitors goals for survival.” are regional. They’re focused in the western and the southern regions, for instance.
Q. How did business dynamics change leading into Covid-19 and what’s the status like in the break the chain phase?
A. Look, these are very, very tough times for bus operators and the travel industry. So there have been several months without revenue for bus operators. And now, moratorium periods have also ended from the Reserve Bank of India (RBI) in April. It’s time for our bus operators to pay back, including the interest on all the accrued interests that have not been waived off. However, I have seen that bus operators are resilient entrepreneurs. In fact, we take inspiration from them. If, for example, in the month of December 2020, in spite of seven to eight months of continuous lockdowns, and restrictions of travel, nearly 80 per cent of the buses
were back on the road by June 2021.
Over June 2021 and in July up until this point, we’ve seen an estimated 50 per cent average recovery across India. Whenever we see recovery take place, I’m confident that the bus operators will find means to bounce back. In this kind of scenario, they will be much more sceptical about new additions to their fleet or routes. So, understandably, they are waiting and watching passenger demand closely. They are hoping for demand to pick up so that they can start operating profitably. Pre-Covid19, let’s assume they were in an expansion mode. During these times, the focus is on profitability and preventing more debts from accumulating.
Q. would you agree that services continue to do better than manufacturing as a whole in the context of reforms the country has witnessed over the past few decades?
A. That’s a very broad question. Depending on what’s the definition of services, if you’re referring to non-touch and feel goods, as services, yes, broadly, we can say Software as a Service (SaaS) does fall into this bracket. Technology services, where we work, have grown vastly as compared to most manufacturing units where there is a dependency on touch and feel.
Q. Tell us in-depth about your product offerings including the flagship for the benefit of bus operators?
A. ‘TicketSimply’ is our flagship product. Through it, bus operators can manage the passenger ticketing side of their business, end-to-end. As more sales channels connect to hotel booking channels, open all digital storefronts, they can look forward to seat fares being dynamically optimised. They can use it to launch their own marketing campaigns and expand business by appointing more booking agents. By optimising costs, they can improve their savings and in turn improve their profitability. It also facilitates monitoring at the branch level performance on fronts like bookings, cancellations
and expenses. For example, the drivers and agents through a mobile app. can on the move, keep a tab on their bookings and gain, and get access to real-time visibility of passengers boarding the occupied seats. It also gives access to full visibility of the cash flow between the branch offices, especially for the large scale operators. Cash flow can also be tracked between the agents and the head office. This adds a layer of transparency to accounts operations. Operators can further easily spot the payment differences in OTA records with reports. ‘CargoSimply’ is our product which is focused for bus operators who also run cargo. It is not focussed on the mainline cargo only “Nearly 75 per cent of the transporters. So we don’t new operators, including have a product for them. We only have ‘CargoSimply’ for the new age bus operators the cargo operations of bus operators who also ferry cargo with the aggregator not exclusively though. It’s business model have relatively new where I would like to reiterate that our focus started their business is on the bus operators who also carry cargo rather than using Bitla Software.” offer cargo transportation as a full service. It can be looked at as an add-on to ‘TicketSimply’ focussed primarily on passenger transportation. Our third product with a tracking goal helps bus operators to track the bus location in real-time. So, in combination with the other two products discussed, it offers very interesting use cases for bus operators to optimise their operations. ‘SimplyBus’ to facilitate bus operators to distribute their inventory to agents in order to be able to benefit from the agent network to get additional bookings.
Q. How do you foresee the evolution of the business of bus cargo transportation compared to passenger transportation?
A. Actually, cargo is a very small part of our business. Like I said earlier, we focus more on the passenger side. So I might have limited knowledge to share on this. But in my own limited view, cargo, I know as an industry, is growing. The government has formally recognised this
sector with its inclusion in one nation one tax regime since April this year. So we expect bus operators to look at expanding to multiple states. They are no longer restricted to run buses in the state where they have paid the road taxes. With the rising focus on building the National Highways (NH) network and increased spending on infrastructure development, the sector is bound to attract more investments. I expect more players and alternate business models to emerge in related spheres.
Q. Does the business scope vary from urban metros to tier cities?
A. I think with respect to cargo, mainly the constraints are around the road infrastructure and the ability to buy large vehicles for building a scale. Typically, therefore, you will see that cargo is led by the large players up until now. Now, with access to more capital, and the production of smaller transportation vehicles introduced to the market, smaller cargo players are expected to enter the market and it is these players who would serve the tier 1 and tier 2 regions. We expect new niche
“Digitisation has players to emerge and it’s an interesting change unfolding. accelerated in the Digitisation has accelerated in aftermath of the pandemic the aftermath of the pandemic across the board. So we across the board. So we are seeing more and more passengers from tier 2, tier 3 are seeing more and more towns making online bookings today. So that’s on the rise. passengers from tier 2, And secondly, because of the tier 3 towns making online restrictions on transportation of buses across the states, bookings today.” etc., bus operators have also started to explore new routes within their own states leading to increased penetration into the tier 2 and tier 3 regions. So, we expect, going forward, these tailwinds will bring about a higher demand and more supply from tier 2 and tier 3 regions.
Q. Are you seeing green shoots despite the threat of the recurring waves looming large?
A. Absolutely. As I said, the pandemic has forced digital adoption in a big way. We all know as users, ecommerce has benefited immensely. This is bound to have a positive impact on the bus industry also. Hence, so far bus operators who were not really tech-savvy, have also been forced to use digital products over the last 15-16 months. And also their staff, the drivers, the admins as part of the ecosystem. So technology will find easier ways into their hands in the future. The demand from tier regions is a big plus. These are all green shoots for our industry, which will stage a bigger recovery as restrictions fade out with a higher rate of vaccination.
Q. How do you expect business to pan out internationally across the different countries that you operate in?
A. We will expand into countries where we can take our expertise built over the years in India and apply it elsewhere internationally, where we feel there is a high potential for it. We are exploring channel sales partnerships in Africa by appointing channel partners. These channel partners will in turn sell our products and services locally. We will then be able to expand this model to other countries like Southeast Asia, the Middle East, Africa and so on.
Q. Are you also involved with aggregators in the business of transport on-demand and shared mobility?
A. Yes, all aggregator bus operators have started their operations with a few exceptions. We have interesting experiences working with them. For instance, we have opened a product with open APIs for them to build technology extensions and experiences for their users. We have further strengthened our data security and privacy norms to ensure this data set is only accessible by bus operators and nobody else, not even us.
fiscal helped you convince your prospect partners to adopt the advancements in technology?
A. Yes, there is a segment of bus operators who still operate offline. So with more digital adoption their search for revenue streams in these difficult times has translated to them being more eager to find different sales channels. Our solutions give them instant access to such digital storefronts and interfaces, on mobile. It also gives them access to all the booking agents networks. There is a visible trend of increased digital adoption and we are onboarding more offline operators at a much better rate compared to the past, the pre-pandemic period.
“There is a visible trend of increased digital adoption and we are onboarding more offline operators at a much better rate compared to the past, the pre-pandemic period.” Q. Has accelerated digitisation witnessed in the last
Q. The bus industry continues to be impacted with the most difficult 15 odd months it has seen especially the private bus fleet operators. How would you like to reassure private bus fleet operators operating offline to allocate resources for such an upgrade in technology?
Q. In the short term it’s all about profitability. Yes, a lot has happened over the past 15 odd months and it has been a question of just survival. It’s about wisely choosing routes and the number of buses to deploy from a bus operators’ view to ensure there is profitability. In the long run, however, technology will continue to take centrestage. It’s a common denominator across industries today. Bus operators are open to making technology their core enabler not just on the sales side but also on their internal operations front. It is directly correlated to their efficiency and the customer success or customer relationship management.
Q. while helping operators with data, how do you help them deal with business volatility? For a bus operator, it’s all about balancing profitability and occupancy ratio isn’t it?
A. Our products provide extensive reporting using which bus operators can analyse data from their own business. So, for instance, revenue, expenses can be captured from
an operations point of view at all levels. It could be at the level of the bus, the route, the branch or at the hub level. They stand to gain easy visibility across the spectrum. Occupancy reports enable them to predict trends. It aids in decision making, for instance, the number of buses to allocate. The data is available in easy to analyse reports with sufficient insights to help optimise business. Bus operators who have used these solutions have been far more profitable compared to those relying on gut feel for decision making.
Q. How are you contributing to making bus travel safer with the innovation of contactless services that were unheard of until recently? A wake-up call to passengers in buses for example is a very well thought of inclusion!
A. We can do as much as technology allows us to do. In fact, we have analysed all the touchpoints of passengers in their journey of interacting with the bus operators. Right from when they start the booking process to the time they get to the boarding point to boarding the bus and finally alighting from the bus. Through technology we have helped eliminate the touchpoints like providing the ability to block seats with compliance to social distancing for when passengers actually board the bus. This is automated for the bus operator. It can be configured on our platform and all channels that the operator uses will deliver on that front. When passengers are onboarded, there is a possibility of commuters finding themselves in close proximity with other passengers, while getting their tickets validated. We have provided scanners to the bus crew with a QR code scanning ability. All tickets will carry these codes devised to eliminate a potentially harmful touchpoint. While technology can provide only so much, bus operators are going beyond by sanitising buses to ensure a safe ride for their passengers. It has translated to a better bookings ratio in turn over these past months. In another initiative, we devised the wakeup call for passengers boarding the bus at night where their stops are reached in the wee hours of the morning. In comparison to bus attendants physically waking up the passengers by coming in close proximity, we use technology to provide a timely and an automated call to the passenger.
Q. Beyond the large acquisition by MakeMyTrip, is there a further fundraising or consolidation exercise on the horizon or are you content?
A. We are very happy where we are. We are fully funded to operate on both technology innovation and the scaling up aspect. Yes, funding is needed by other
Bus operators who have startups. We also believe in scaling profitably. It’s slower used these solutions have growth but we believe it’s a more sustainable way to been far more profitable approach business.
compared to those relying Q. How do you expect on gut feel for decision to leverage the wave for electrification in buses?
making. A. We are hearing about a lot of these investments. We are in touch with such growing companies although we think it is a gradual curve especially with the current stress and the Covid19 induced distorted demand. As far as aligning with electrification, it’s a work in progress and we are evaluating our role in it. We don’t expect it to impact our technology at this point and time but we are still in the learning phase.
Q. what are you taking forward from this pandemic marred fiscal and what’s the outlook for the foreseeable future?
A. We have used the pandemic marred fiscal, to strengthen our technology platform. Our core offering to bus operators. We are also building in anticipation to make an entry to RTCs and the stage carrier segments. We have also worked to reduce our turnaround times by strengthening our internal support processes. Our sales teams are better trained to articulate our values to the customers. I think we’ve used this time very well. We will continue to be very aggressive in India and we look forward to expanding internationally.
