How to Create an Intercity Bus Platform Business to allow New Value Creators While Capturing the Biggest Value
For years, most bus transportation companies have run their businesses using a traditional pipeline operational model. This means the company handles everything under one roof—like bus maintenance, ticket sales, luggage handling, and more. Essentially, they manage all the moving parts of their operations as one big, complex system. While this approach works, it often makes management difficult and time-consuming.
Now, there’s a new way to run things: the platform operational model. Instead of trying to do everything themselves, bus companies can focus only on what they do best—delivering excellent travel experiences. Other tasks, like ticket sales or bus maintenance, can be outsourced to specialised partners.
Here’s how it works:
- A bus company could partner with resellers to handle ticket sales while focusing on providing passengers with top-notch service during their trip.
- Similarly, maintenance tasks could be outsourced to certified mechanic shops to ensure buses are always road-ready.
The platform model turns the company into a kind of ecosystem where others help create and deliver value. This way, the bus company isn’t bogged down by trying to manage every little detail.
Companies like Uber, Lyft, and BlaBlaCar show how this model works. While they aren’t traditional bus companies, they’ve revolutionised transportation by acting as platforms. They connect drivers and riders, focusing on making that connection smooth, while others provide the actual transportation service.
The Takeaway
Switching from the pipeline model to the platform model is an innovative way to simplify operations and grow your business. By focusing on what your company does best and letting others handle the rest, you can stay competitive and deliver more value to your customers.