Bus aggregator Shuttl plans NCR expansion

With Gurgaon anchorage, will soon start monthly subscription for commuters in Delhi and around

Gurgaon-based bus aggregator Shuttl will be introducing a subscription-based service in the National Capital Region.

Financially backed by Sequoia Capital, it is presently the country's largest bus aggregating platform, around 20,000 rides a day. It says the aim is to make daily commuting more convenient for intercity travellers.

A year into operations, Amit Singh, co-founder, told this newspaper the company would undertake some experiments in other cities, while concentrating on expansion in existing regions. "The idea is to cover NCR and then go deep. We have gone deep in Gurgaon. We will do top covering overall in the Delhi/NCR." This would continue for few months and Shuttl would consolidate operations after that.

Shuttl launched its tech-enabled platform in April 2015. It got $23 million (Rs 155 crore) funding in two tranches, from Sequoia, Times Internet and Lightspeed Ventures. It has a little more than 500 buses on its platform and is not looking for further funds.

Customers taking Shuttl make payment through e-wallets. "We do not have cash in the system. Going forward, we will move towards subscription. People will pay for a month and enjoy the rides, just as you pay for TV channels and newspapers," he said.

Bus aggregation services cater to a segment of office-goers that cannot afford a car or a taxi ride but do not want to get into crowded public transport. Singh said since their commuters were now used to a better office and home ride, they do not want to undertake a journey in discomfort. A seat is assured during the ride. "There is a pattern of travel every day for office-goers which brings assured business to us and also visibility into our system," he said.

The buses operate under a contract carriage licence and are owned by drivers. Shuttl takes the bookings and makes a margin, a portion of which it shares with the drivers.

On average, said Singh, 22 per cent of those in offices are women; however, they form 35 per cent of his riders. "Women have limited options. They resort to crowded buses, shared autos, solo cabs, etc. With 15-20 people in a comfortable bus, automatic de-risking happens."

For additional safety of women passengers, the software is programmed to not leave a single woman on board a bus. Beside a 'Home Reach' button facility.

Shuttl faces competition from Ola Shuttle that offers similar service and other competing modes. Singh recalls Jeff Bezos saying three years after founding Amazon.com that it was Day One for the internet; similarly, he says, it is Day Zero for transportation. "There are 15 million-plus rides in the NCR region. Whoever does 1,500 rides and more is our competitor. Whoever comes with a better offering will win."

He said their business had a network effect. "As new persons come to a network, the experience of existing people get better, just as social networking sites. If more people come to Shuttl, more groups will be formed nearer to home. As the network becomes denser, convenience gets better."

They are also into tie-ups with companies - examples are Fidelity, Nearbuy, Oyo, Amex and Snapdeal -- for transporting their employees.