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Entries in India (35)

Thursday
Jul022015

Indian Business Model Makes Green Energy Affordable

 

New UNOSSC banner Dev Cha 2013

The technology already exists to provide renewable energy and electricity to all the world’s poor. The trick is finding a way to pay for it and to make it sustainable. Many innovators are experimenting with business models to reach the so-called Bottom of the Pyramid (BOP) cohort, and the 1.2 billion poorest people in the world who do not have access to electricity (World Bank) (http://tinyurl.com/n9p3f5x). A further 2.8 billion have to rely on wood or other biomass materials to cook and heat their homes.

The International Energy Agency (iea.org) believes US $48 trillion of investment will be needed between now and 2035 to make sure energy capacity matches rapid population growth.

In the influential book The Fortune at the Bottom of the Pyramid (http://www.amazon.co.uk/Fortune-Bottom-Pyramid-Eradicating-Poverty/dp/8177587765), the late professor C.K. Prahalad (http://en.wikipedia.org/wiki/C._K._Prahalad) advocated seeing the poor as people with needs and assets: consumers who just need the right goods and services designed for them. It was a change from thinking only of the world’s wealthier populations as consumers, and revealed a market worth billions waiting to be tapped.

Energy is key to development and improvements to living standards. Yet energy poverty plagues much of the global South, especially in Africa and particularly in rural areas.

The World Bank has identified 20 countries in developing Asia and sub-Saharan Africa which will require a massive effort to expand access to electricity and safe cooking methods for poor households.

Around 80 per cent of the people without modern energy live in rural areas. While progress has been made since 1990 in expanding access to energy, it has failed to keep pace with population growth. According to the World Bank, the pace of expansion will have to double to meet the 100 percent access target set for 2030.

To avoid increasing global carbon emissions while achieving this goal, many are looking to renewable energy sources and technologies to reach these last groups of people.

As pointed out by the Institute of Development Studies (http://www.ids.ac.uk/news/can-renewable-electricity-reduce-poverty), “The global threat posed by climate change means that we also face the pressing need to use less carbon in existing energy systems. Making progress on both energy poverty and decarbonization requires a sharp increase in renewable electricity production, both on and off-grid.”

The institute identified four necessary factors for access to renewable energy to benefit poor people.

1.         Once electricity is generated, it needs to be reliably fed into the system.
2.         This additional supply must be made accessible, and affordable, for poor people.
3.         Increased electricity consumption then needs to translate into poverty reduction.
4.         Increased electricity supply can indirectly reduce poverty by boosting economic growth.

India’s Simpa Networks (simpanetworks.com), started in 2011, has a business model it believes will do the trick. Simpa has developed a clever way to increase access to home solar power systems for the poor, by allowing customers to purchase the system in gradual “rental” payments over time. The customers eventually come to own the power system outright, and from then on to generate electricity for free. Since the payments are small and incremental, it suddenly becomes within the realm of poor households to afford modern solar energy systems.

This is called the “Progressive Purchase Pricing Model” – similar to “prepaid”, “pay as you go” and “installment plan” models. Under this model, customers make a 10 percent down payment and receive the home solar system. The customer then buys a time-specific amount of energy for between US $1 and US $10 with their mobile phone. The orange lock box on the power system has a keypad on the front. When a code is punched in, it releases electricity (http://simpanetworks.com/our-solution/).

In increments, while the customer purchases energy for home use they also eat away at the cost of the system, until eventually it is paid off, usually at a total of US $300. Systems have an expected life span of 10 years.

With few cash resources, poor households usually are not capable of saving enough cash to purchase a full energy system for their home. Instead, they rely on buying kerosene for lamps or using battery-powered torches and lamps when they can afford it.

In 2012, Simpa teamed up with SELCO India (http://www.selco-india.com/) – a social enterprise providing sustainable energy solutions and services to households – to sell 1,000 home solar power systems, expanding to 5,000 systems in 2013, according to a case study from not-for-profit Synergie pour l’Echange et la Valorisation des Entrepreneurs d’Avenir (SEVEA) (sevea-asso.org). The goal is to reach 25,000 units sold by the end of 2014, proving this business model can scale. Ultimately, Simpa wishes to mega-scale its approach and reach 1 million households over the next five years.

Simpa believes take-up will be quick because this model reduces risk, both for the seller and for the bank that may loan the cash for the 10 per cent down payment. Simpa acts as a go-between for the system sellers such as SELCO and the banks. Simpa believe this business model reduces the risk of non-payment or loan default and has the right incentives in place to encourage the customer to hang in and keep making payments until they own the system outright. Customers enjoy the benefits of clean energy 24/7 from day one and can see clearly the connection between the energy they receive and the small payments they make. For those who default from paying, the system is taken from their home.

When the system was piloted in Karnataka, India, all loans were successfully repaid.

Simpa Networks is a venture capital-backed technology company. It hopes its approach will attract investors, particularly social investors, seeking a low-risk investment in helping expand energy access.

By David South, Development Challenges, South-South Solutions

Published: June 2014

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=XhU9BQAAQBAJ&dq=development+challenges+june+2014&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challenges-june-2014-published?qid=be364432-b16e-4e07-a9a5-afee35205b96&v=default&b=&from_search=1

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

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This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

Tuesday
Jun302015

Indian Initiatives to Make Travel Safer for Women

 

Shocking assaults on women traveling in India have galvanized innovators to find solutions. One solution that is proving successful is to establish specialist taxi services for women. As a happy additional benefit, these taxi innovators are transforming the taxi experience, introducing more ethical practices such as honest fares, professional and safe driving habits and clean, hygienic and comfortable taxis.

With sexual harassment levels high and several shocking assaults and rapes of women in Indian cities grabbing global media attention, Indian women are now being offered a variety of women-driver-only taxi services to ensure they get to work and home again safely.

As well as offering their passengers security, these companies are also redefining the taxi experience with innovation. As travelers know, the taxi experience in many cities can be frustrating, fraught with scams, rip-offs, disputes over fares, unhygienic taxi interiors and poor driving skills. These pioneering women-only taxi companies are trying to show there is another way: that taxis can be clean, meters honest and driving safe and sound.

Security for women has come into the media spotlight in India after a series of high-profile attacks and sexual assaults. The country is undergoing major economic and social change as it modernizes and urbanizes. Women are seeing their incomes and their role in the economy increase.

This brings both opportunities and risks. Women who would have only lived and worked in a small geographical area, and generally associated only with their family or a small village, are now mobile and in contact with the busy urban environments of megacities awash with strangers.

One woman is raped every 20 minutes in India, according to the National Crime Records Bureau. But police estimate only four out of 10 rapes are reported, largely due to victims’ fear of being shamed by their families and communities. At the beginning of March 2013, a campaign to raise awareness on women’s safety was launched in Delhi to chime with International Women’s Day. The UN also confirmed in March 2013 a global strategy to combat violence against women (http://www.un.org/womenwatch/daw/csw/57sess.htm).

One champion of safer transport for women in India is Revathi Roy, a rally car driver and entrepreneur. She started a women-only taxi company in Mumbai called Forsche in 2007 out of raw economic need, and to solve a problem.

“I am a very fussy passenger and I would get upset that the seat was not comfortable, or the driver was driving too rashly for my liking,” Roy told BBC News.

“I would also find it irritating that some drivers would stare at me from their rear-view mirror and one day, I just decided I had had enough.”

Forsche – pronounced “for she” – a play on the German car maker Porsche’s name – was one of the pioneers in bringing all-women taxi services to India. Their drivers’ uniform came in pink and purple with a purple scarf worn around the neck.

However, Roy parted ways with her previous business partner and set up Viira Cabs (viiracabs.com/) in 2011. Viira means ‘courageous woman’ according to Roy.

Roy hopes passengers from young girls to senior citizens will feel safer and more confident knowing a woman is the driver.

“The attitude of Indian mothers is changing,” she said. “Now they know their daughters go out and drink. They realize they may as well keep them safe by putting them in the hands of a woman who at all times is playing the role of a mother or a sister.  A man can’t be a woman. And just because a woman is sitting at the wheel she doesn’t become a man.”

The company has 20 taxis and 25 drivers. It uses a fleet of Maruti Eecos (http://marutisuzukieeco.in/), a mini van made by Suzuki capable of carrying four adult passengers and their luggage. Viira also seeks to improve driving standards on Mumbai’s roads by setting a good example with safe, defensive driving techniques.

A pioneer of female taxi drivers in India, Roy is now the Mentor and Chief Driving Officer for Viira Cabs. According to the company’s website, she is looking to train thousands of women to be able to make their livelihood as a taxi driver.

“Driving is still very male dominated and in Mumbai where most people travel by public transport, there are very few women with driving licenses,” she explained.

“Viira is a very powerful platform for poor, urban women who are now able to earn up to Rs 12,000 a month (US $222),” Roy told CNN.

Viira’s drivers wear a professional uniform of a peaked cap, white short sleeved shirt with blue trim, and a plastic identification badge on a blue lanyard. This makes it clear from the start to passengers who is driving them.

The service runs 24 hours a day, seven day a week, and journeys are dispatched from the company’s call centre. To keep the service safe as can be, all vehicles are monitored by GPS (global positioning system) and a panic alert system. The drivers receive self-defence and defensive-driving training so they can elude any dangers while on the road. They also know how to handle roadside emergencies and are backed up by 24/7 support from the call centre.

The taxis follow the standard charges set down by the Mumbai region. By using mini-vans, passengers are able to enjoy a comfortable and roomy ride in air conditioned comfort – a big plus in a hot country. The vans run on CNG (compressed natural gas) (http://en.wikipedia.org/wiki/Compressed_natural_gas), reducing pollution.

To add even more value to the journey experience, the taxis feature live television and Internet web surfing using something called Tabbie TM (Tablet in a Cab), a 10-inch-wide computer tablet.

In addition to the taxi service, the Viira Motor Training School offers driver training to women with low incomes. Its 12-week program covers all the main areas of taxi-driving skills – driving theory, mechanics, customer service, health and safety and self-defence – but also goes to the next level and gives the students training on a vehicle-driving simulator donated by the Suzuki company.

Roy said she hopes to expand the business from Mumbai to smaller urban areas “where Indian women are most starved of opportunities.”

Long-term, she wants to become “India’s premier chauffeur and fleet service.”

Roy’s success with these companies led to the founding of the social enterprise Sakh Consulting Wings (http://sakhaconsultingwings.com/about-us.php) to support establishing similar services in other Indian cities.

Sakha Consulting Wings is partnered with the Azad Foundation to promote taxi driving as a viable career for women from poor backgrounds.

Super Cabz in Delhi (http://www.supercabz.com/women-friendly-cab-service-delhi-ncr.php) is another service aimed at women. It has innovations such as panic buttons in the back seats of the cabs and mobilizers to allow the central call centre to shut the cab’s engine down in an emergency. There is also a GPS monitoring and tracking system to keep tabs on the cabs as they go about the city.

By David South, Development Challenges, South-South Solutions

Published: May 2013

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=RfdcAwAAQBAJ&dq=development+challenges+may+2013&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challenges-may-2013-issue

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

Creative Commons License
This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

 

Tuesday
Jun302015

Boosting Tourism in India with Surfing Culture

 

Tourism has experienced decades of growth and diversification and is now considered one of the fastest-growing economic sectors in the world. According to the UNWTO – the United Nations World Tourism Organization – modern tourism is “a key driver for socio-economic progress.”

The scale of global tourism means it rivals other sectors, such as oil exports, food products and automobiles in terms of economic clout. With such an important role to play in global commerce, it has become a top income source for developing countries in the global South.

International tourist arrivals grew by 4 per cent in 2012, reaching a record 1.035 billion worldwide (UNWTO). Emerging economies led the growth in tourism, with Asia and the Pacific showing the strongest gains. Tourism outpaced growth in the wider world economy in 2012, contributing US $2.1 trillion to global GDP and supporting 101 million jobs (WTTC).

“2012 saw continued economic volatility around the globe, particularly in the Eurozone. Yet international tourism managed to stay on course” said UNWTO Secretary-General Taleb Rifai. “The sector has shown its capacity to adjust to the changing market conditions and, although at a slightly more modest rate, is expected to continue expanding in 2013. Tourism is thus one of the pillars that should be supported by governments around the world as part of the solution to stimulating economic growth.”

One country that has found tourism becoming a key contributor to its national income is India. The country’s travel and tourism industry is now three times larger than its automotive manufacturing industry, and generates more jobs than chemical manufacturing, communications and the mining sector combined (World Travel and Tourism Council).

Indian Tourism Minister Subodh Kant Sahai called for the sector to create 25 million new jobs over the next five years and it is hoping to grow the market by 12 per cent by 2016 (The Economic Times).

Travel and tourism now contributes 6.7 billion rupees (US $124 million) – or 6.4 per cent – of the country’s total GDP (gross domestic product). The sector supports 39 million jobs directly and indirectly.

But competition for global tourist dollars is fierce. As more flight routes open up – Africa for example, is seeing new airlines and routes emerge every year – a person looking for somewhere to holiday has an ever-growing range of options to choose from. Will it be Africa this year, or shall we go to Asia?
One way to attract tourists and gain an extra edge in the global travel marketplace is to show imagination and innovation. Being different and novel can be the clincher for a tourist, especially one who is widely travelled and is searching for new experiences.

In Southern India, the state of Kerala is well known for its ayurvedic medicine (http://en.wikipedia.org/wiki/Ayurveda) and food tradition going back centuries, combined with its laid-back beach culture. It is a heady combination that successfully attracts many people, who come to relax and boost their health.

Now, Kerala is offering a new dimension to this experience: surfing. Surfing is a water sport involving a person riding ocean waves (https://en.wikipedia.org/wiki/Surfing), usually on a long board. India has enormous and mostly untapped potential as a surfing destination, with its hot weather and 7,000 kilometres of coastline.

Soul and Surf (http://soulandsurf.com) in Golden Beach, Varkala is within walking distance of the Varkala Cliff tourist area and an hour away from the closest major airport, Trivandrum International Airport.

The founders of Soul and Surf, Ed and Sofie Templeton, were captivated by “surfing warm, empty waves, eating wonderful fresh, cheap seafood, practicing yoga and receiving ayurvedic treatments”, according to their website.

“Enchanted by India’s magical, spiritual atmosphere, the warmth of the local people and the raw natural beauty of the area,” they set up a combined surfing and yoga retreat in 2010.

They have become part of a growing surfing scene in Kerala, and an increasing awareness in the country that its long ocean coastline is perfect for water sports.

As surfing grows in India, the owners wanted to create a business that supported the local area, particularly coastal fishing communities surrounding Varkala.

They have also expanded to run a luxury surf and yoga retreat in Sri Lanka and guided trips to the Andaman Islands.

Soul and Surf was inspired by the Surfing India Surf Ashram (surfingindia.net), a 12-hour trip up the coast from Surf and Soul in Karnataka.

Their so-called “Surfing Swamis” have discovered the best places to surf in India and are spirited champions of the whole surfing lifestyle. A swami (http://en.wikipedia.org/wiki/Swami) is a Hindu male religious teacher.
Surfing India promotes adventure sport in India and was started in 2004. At the time, surfing in India had a very low profile. Surfing India offers a sophisticated experience to travellers, including Wi-Fi Internet access, vegetarian food and all the equipment required.

All the staff are volunteers and work for room and board. Profits are plowed back into keeping the surf ashram going and helping its activities, which include adventure tours, a surf camp, surf school, yoga retreat, bodyboarding, snorkelling and wakeboarding.

The Surfing Swamis Foundation is a non-profit organization whose goal is to “teach surfing and environmental awareness to children, orphans, and handicapped persons of any age or gender.”

It also sponsors the All India Surf Team for boys and girls across India.

By David South, Development Challenges, South-South Solutions

Published: April 2013

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=8vNcAwAAQBAJ&dq=development+challenges+april+2013&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challenges-april-2013-issue

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

Creative Commons License
This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

 

Thursday
Jun252015

Free Magazine Boosts Income for Rickshaw Drivers

 

In the bustling, congested cities of Asia, rickshaws and auto-rickshaws are common forms of transport. Smaller, cheaper and more nimble than cars, they play a key role in the transit infrastructure, helping to get people to work and to get around.

According to a report by the World Resources Institute (wri.org) and EMBARQ – a global network of experts on sustainable transport solutions – India’s auto rickshaws are “an increasingly important part of urban transport in cities.”

The report estimates the number of auto rickshaws at between 15,000 and 30,000 in medium-sized cities and over 50,000 in large cities. The report found they make up between 10 and 20 per cent of daily motorized road transport trips for people in Bangalore, Mumbai, Pune and Rajkot.

And it’s not just the economic role played in transporting people: auto rickshaws are made in India and their production there doubled between 2003 and 2010, making them a source of manufacturing jobs too.

As India’s cities continue to grow – estimates forecast urban populations surging from 340 million in 2008 to 590 million by 2030 – auto rickshaws could have a bright future as they remain an affordable and safe transport solution.

The monthly magazine Meter Down (http://meterdown.co.in/) – launched in 2010 – is targeting the large captive audience of Mumbai’s rickshaw passengers with news and advertising. It is modelled on the familiar free newspapers found in cities around the world. Usually, these newspapers are distributed at subway and metro stations or in metal boxes at bus stops. Meter Down takes a different twist on this concept, distributing the publication directly to rickshaw passengers.

Mumbai is a crowded and very busy Indian city with an estimated 14 million people. Many residents spend a lot of time commuting – and a lot of time stuck in traffic jams. They need something to occupy them and to keep them informed about the news. This also presents a significant opportunity for businesses to communicate messages and advertising products and services.

Founded by three university graduates, Meter Down is trying to reach young professionals with a bit of money who can afford to ride to work in auto rickshaws.

It is distributed through 7,000 auto rickshaws in Mumbai, according to The Guardian newspaper, and is also being distributed in Pune and Ahmedabad.

The clever bit is the incentive for the drivers to carry the magazine: they receive 35 to 40 per cent of the profit from advertising sales.

This is added to the 400 to 500 rupees they make in a normal shift, according to the Mumbai Autorickshawmen’s Union.

But isn’t it a challenge to read a printed publication while bouncing along the road? The publishers came up with a solution: no story is to be longer than 300 words and the magazine has many large-size photographs to make it visually appealing and easy on the eye. Then there is the issue of passengers leaving with a copy of the magazine, denying the next passenger their read. The solution they came up for this is to tie the magazine to the rickshaw.

One of the biggest problems for any new start-up publication is how to scale up and reach more readers. Meter Down cleverly has the mechanism to scale built into its business model: “The market for this is as big as the total number of auto-rickshaws in each city,” Dedhia told The Guardian. “We have successfully scaled the model and tweak it as per different specific needs. Since auto-rickshaws are present in every part of the country, we can expand the network everywhere.”

Meter Down’s founders estimate that each rickshaw makes 90 to 95 trips every day. They have calculated this leads to a potential readership of 600,000 people. To increase revenue sources, the magazine also sells advertising space on the back and inside of the rickshaws.

For people in wealthier countries, rickshaws may seem like a rough way to get to work, but they are actually, for Indians, the more expensive option. A three-mile ride in Mumbai costs 68 rupees (US $1.27), according to The Guardian, which is 10 times the cost of a second-class train ticket.

For Meter Down, this means targeting the magazine and the ads at a market of readers with money and a willingness to buy products and services. It looks like things could be on the up for Meter Down!

By David South, Development Challenges, South-South Solutions

Published: September 2012

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=QZtjxQ5L9gEC&dq=development+challenges+september+2012&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsseptember2012issue

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

Creative Commons License
This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

Thursday
Jun252015

Help is at Hand for India’s Beleaguered Bus-riders

 

The website is a simple affair: a distinctive logo sits above a lean-looking booking system that allows users to enter their journey start and end destination, date and then click for available buses and prices. Its simplicity is deceptive: redBus is a smart technological solution to a very complicated problem in India: booking and buying a bus ticket. The service it offers – relief from a chaotic, frustrating and time-consuming task – is transforming the experience of travel in India.

Based in India’s technology hub of Bangalore (http://en.wikipedia.org/wiki/Bangalore), redBus (redbus.in) is a web start-up begun by young whizzes from technology companies who decided to take a risk and venture out and do something new.

Back in 2005, redBus’ three founders, all graduates of one of India’s top engineering schools, were working in Bangalore for well-known information technology companies such as IBM, Texas Instruments and Honeywell.

As they tell the story on their website, it was the difficulty of getting a bus home during the Hindu religious festival of Diwali that prompted the inspiration. The trip was a last-minute decision, and buying bus tickets proved far from easy. On top of failing to get a ticket from various travel agents, journeying around Bangalore meant encountering the city’s traffic gridlock.

This experience led to the idea of developing a service to book bus tickets over the Internet.

RedBus quickly evolved into an innovative service offering multiple options to customers. They can call a phone number and speak to a customer service representative or use a mobile phone to book a ticket. RedBus claims to have sold more than 8,000,000 tickets to date.

Tickets are also delivered to customers in major cities in advance of their travel. Even more conveniently, redBus developed a service called mTicket. It sends the ticket by SMS (mobile phone text message) straight away when a customer makes a booking. The mTicket appears on the display screen of the mobile phone and the customer just has to show their mTicket to the driver to board the bus.

RedBus uses partnerships to expand their distribution network, and this means redBus tickets can be purchased at more than 75,000 outlets. The company now works with more than 350 bus operators, allowing customers to book tickets on more than 4,500 routes across India.

The service set out to achieve two goals: create a one-stop shop for ticket purchases, and to make it possible for customers to get tickets when they needed them and not be told they have been sold out.

Indians were already having success with booking airline tickets online. But nobody else had thought of doing central, online sales for bus tickets before.

Research was behind redBus’ success. The founders interviewed bus operators, consumers and venture capitalists before setting up the business.

They then set about writing the code for the Internet service and put together a business plan and presented it to The Indus Entrepreneurs (TiE) (tie.org) – a network of mentors who help young entrepreneurs. With the support in place, they were able to leave their well-paying, secure jobs to start redBus.

Among the many challenges they faced was changing the mindset of bus operators used to dealing only with travel agents working out of sales offices.

It also took time for the concept to take off. But as word-of-mouth got around, more people started to use the website. The young team grew from just three to 50 within nine months.

Their business success, as they describe it, is the result of listening to, and soliciting feedback from their customers. They say it has helped them identify what is going wrong and fix it, and describe their business culture as “learn, implement, grow.” They also have a culture of sharing ideas and mistakes to encourage learning. It seems it is this buzzy, youthful and always-learning business culture that is behind redBus’ success.

By David South, Development Challenges, South-South Solutions

Published: April 2012

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

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