On-demand public bus service can pick a group of people up from any accessible location at any time and drop wherever people want to go at a subsidized price through bus or minibus.

Recently, traffic congestion has become a crucial issue in all major cities. The core reasons behind that are increasing the number of private vehicles on the road and scare the use of public transport. So why is the public transport system unpopular?

The main reason behind that is the lack of flexibility of the system. Mass transport systems have their fixed schedule which is not in the lines of dynamic demand of the public. The travel time and frequency also discourage people.

The on-demand business has emerged in the last decade to meet the dynamic demand of the people. Even in India, on-demand businesses have so much potential. The government of Haryana allows on-demand bus transportation. So now the question arises:

How to Develop an On-Demand Public Transportation App?

The data you need to plan an on-demand bus service platform:

• The topology of the region where you are planning to provide this service
• Study the various transportation properties such as population, road networks, travel time, traffic conditions, etc.
• Travel behavior of the people
• Optimization of route to decide which is a more feasible option for scheduling the rides e.g. flexible/fixed/semi-fixed 
• Digital mapping using GPS to provide real-time updates to consumer and supplier
• To fix the raters for the service you need data of trip cost, employment, holidays, road conditions, etc.
• Collect real-time data of fuel prices, fuel timings, holidays, user behavior and any variable that might affect the demand of the service to decide the dynamic pricing for transportation.

* You can use an intelligent transportation system (ITS) to collect, analyze, distribute and store the data or we (Coruscate) can help you out to start your business from the scratch.

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The common features of the on-demand bus service platform are:

• On the consumer side:

   

  • Service app 
  • Locate the nearby vehicles
  • Hassle-free booking of ride
  • Multiple payment options
  • Feedback system to rate and review the experience

• On the supplier side:

   

  • Create the service platform
  • Provide the jobs through that platform
  • Accepts or reject the job 
  • Performs task for the consumer
  • Can easily access the employee
  • Accepts payment through that platform
  • Take every feedback into account to improve technology and quality of service.

What more can be offered to improve the feasibility of the service :

• Use pilot projects to target high priority areas and routes where conventional transportation is difficult to accommodate. E.g. Target special users such as elderly or disabled people and children as either they don’t have a license or they can’t drive. You can also target the outskirts of the city as the other transportation targets broader areas of the city. Provide a unique platform which differs from similar service platforms. Unique features could be :
  • Simple registration
  • Pre Booking of the service In-app chat option
  • Data security and safety options
  • Varied rate plans
  • Some promoted features to attract and stabilize the user base. E.g. predictive searches, promo/offers, membership benefits, in-app wallet, cloud environment, etc.

Required Cost to Develop On-demand Bus services App:

When it comes to the development of on-demand bus services app, it depends on various factors like the country in which you are planning to provide this, service, rules and regulations of the country as it affects the service charges, market research, designing, programming, the prototype you are using, testing, and release & support of the service.

Considering all the above factors the cost to develop an on-demand public bus service can be between $12000 to $30000(With basic features).

Growth and Market Analysis of On-Demand Public Transportation:

The study by McKinsey suggests that by 2030, urbanization will grow by 50% leading to 60% of people being migrated to cities. Road congestion is already a major issue and in 2030 it could be a disaster if the issue is not resolved quickly. That is the main reason that despite having originated in Europe, the on-demand businesses have seen substantial growth in the number of service providers, number of users across the globe within a short span of time. 

The current business model of it revolves around the on-demand transportation of a group of people in the same direction via bus or minibus. Discounts and promotional offers used as a tool to extract people and generate revenue.

The market of on-demand businesses is expanding rapidly in developing nations. To address the issue of traffic congestion, the governing bodies of nations are also promoting the alternative mode of transportation. In terms of revenue, the ride-sourcing segment accounts for a notable share of on-demand transportation followed by vehicle rental services. PPP model of development gives you the extra booster.

The benefits of starting an On-demand Bus services:

• It is very cost-effective as on-demand platforms accept fees per transaction. Which very much reduces overhead costs.
• It is a very flexible industry with a separation of concerns. Service provider and app provider work in their respective fields.
• To make a smart and easy platform is a huge task, but once completed it will make you stand ahead of the competition.
• Most of the investors prefer on-demand businesses over private digital infrastructure to invest in. 

Summing Up:

Delivering convenient services at lower prices with efficiency and space, on-demand bus service is expected to change consumer behavior towards public transport. It is still in its growth process but will soon be a prominent mode of transport across the globe. In a country like India, where the transportation industry is transforming, it would be a smarter decision to invest in this segment.