Expert case by Ben

Double trouble

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Case Prompt

Our client is RedBus, one of several operators of iconic double-decker public transport buses in London. Over the past three years RedBus have experienced declining profitability, as a result of reduced demand for buses due to growth in affordable taxi services, such as Uber.

The client is looking to understand the root cause of the issue and discuss ways to improve profitability.

Question 1

How would you approach helping RedBus?

Question 2

What is the breakeven number of passengers for a double decker bus?

Question 3

The client has shared passenger information on 5 of its routes. What can you learn from the information?

Question 4

Unfortunately, the frequency of buses is regulated and RedBus cannot reduce it. However, RedBus is considering acquiring single decker buses to fully operate on some routes, and during off-peak hours on others. Their investment threshold is a 3 year payback period. Should they do it?

Question 5

After looking at the cost side, RedBus would like to evaluate some ideas for increasing revenues.

Final Question

We are meeting with the CEO of RedBus, what would you tell her?

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