Want to Enter the Bus Business? Think Twice – Says Chintan Rathod of Nakoda Travels
In an exclusive interview, Chintan Rathod, Owner, Nakoda Travels, shares an unfiltered perspective on the realities of running a bus business today.
The intercity bus industry in India has undergone a dramatic transformation over the years. Once dominated by traditional operators, the sector is now shaped by technology, evolving passenger expectations, and aggressive competition from aggregators and corporate-backed fleets.
Digital booking platforms, real-time tracking, and dynamic pricing have undoubtedly enhanced convenience for travelers. But for bus operators, staying competitive has never been more challenging.
Amidst these shifts, Nakoda Travels has stood its ground as a reliable, service-first operator.
Founded in 1992 by Pradeep Rathod, Nakoda started as a small regional service and has since grown into a well-established name in the industry.
Today, the company has built its reputation on passenger loyalty, transparent pricing, and consistent service quality with a fleet of 30 buses covering 12 key routes across Maharashtra, Karnataka, Telangana, and Goa.
Unlike many competitors who frequently adjust fares based on demand, Nakoda has maintained a fixed-rate policy year-round, earning the trust of travelers who value stability and fairness.
In this exclusive conversation, Chintan Pradeep Rathod, owner of Nakoda Travels, shares an unfiltered perspective on the realities of running a bus business today—the impact of aggregators, the role of technology, government regulations, and why he believes the industry is no longer a fair game.
Zainab Azhar (ZA): Nakoda Travels has been in the industry for over three decades. Can you take us through the journey—how it started, how it grew, and where it stands today?
Chintan Rathod (CR): Our journey started in 1992 when my father, Pradeep Rathod, founded Nakoda Travels. At that time, the industry was purely service-based. There were no online bookings, no rating systems—passengers traveled based on trust. If they liked your service, they would always choose your bus.
Even today, we stick to the same principle. We don’t cut fares, we don’t manipulate pricing during peak season, and we don’t follow the “discount” model that many operators use today. Our ticket prices remain the same for 12 months.
The result? Loyalty.
Our passengers wait for our buses. If they don’t get a seat on a particular day, they adjust their travel plans just to board our bus. That’s because they trust our service.
ZA: The bus industry has changed significantly in the last few decades. How do you see this evolution?
CR: Back then, bus operators had full control over their business. Ticketing was offline, pricing was based on operational costs, and passengers mostly booked directly with us.
But everything started shifting with online platforms and government policies.
One of the biggest changes came with the UDAN scheme. The idea was to make flying more affordable, which in turn hit the bus industry hard.
Then came COVID-19, which shook the entire industry. Initially, we thought the recovery would take years, but something unexpected happened—demand for buses surged post-COVID. We still don’t fully understand why, but people started traveling more than ever.
At the same time, aggregators entered the picture. RedBus and similar platforms completely changed how ticketing worked. While they made it easier for passengers to book tickets, they also took control away from operators.
Now, reviews and ratings determine success, and if you don’t meet their conditions, your bus gets pushed down in search results.
“Today, it’s not just about running buses—it’s about managing online visibility, reviews, and commission costs.”
ZA: You mentioned aggregators and private players. Has private investment played a role in this shift?
CR: In earlier days, the bus business was largely owner-driven. Small fleet owners like us managed operations without interference. Today, however, private investments and corporate players are stepping in, bringing both advantages and challenges.
One major advantage is that they have helped bring structure and efficiency. Many small operators struggled with organization, and companies that invested in fleet management systems and software made a big difference.
However, the disadvantage is that smaller operators are being sidelined. Many of these big players focus on branding and marketing rather than service quality. They spend heavily on promotions, pushing down smaller, service-oriented operators like us.
A bigger issue is that most of the industry’s workforce is unskilled. Apart from managers and owners, many staff members—drivers, cleaners, and booking agents—lack formal training.
Private investments have focused on technology and marketing, but not on improving skill levels within the industry.
“If this industry is truly going to evolve, we need investment in people, not just in platforms.”
ZA: And what about technology? Has it helped or complicated things?
CR: Ours was an industry where everything was cash-based. A passenger would walk in, pay cash, and get a ticket. There were no online records, no real-time tracking. Today, with platforms like RedBus, Paytm, and Abhibus, every transaction is digital, making revenue tracking easier.
Another big change is GPS tracking. Earlier, if a bus was delayed, passengers had no way of knowing where it was. Now, they can track the exact location on their phones. This has made the business more accountable but has also raised passenger expectations.
And then there’s UPI and online payments. With everything digital, owners finally know exactly how much revenue is coming in. Earlier, there was always some discrepancy between collected and reported amounts.
ZA: The bus industry has become highly competitive. What’s your strategy for staying ahead of the competition?
CR: Many new operators undercut fares to attract customers, but this strategy is suicidal. You can’t sustain a business by constantly reducing fares—you will struggle to cover your fuel, taxes, and maintenance costs.
Our focus has always been reliability. Passengers today aren’t just looking for the cheapest ticket; they want to be sure the bus will arrive on time, the seats will be comfortable, and the journey will be smooth.
This is why we don’t worry about competition. When your service is strong, you don’t need to fight for passengers—they will come to you.
ZA: Let’s talk about online aggregators. How have they impacted bus operators?
CR: Earlier, bus operators had direct relationships with passengers. If you provided good service, passengers remembered your name and traveled with you again.
Today, passengers trust RedBus, Paytm, and other aggregators more than the operator. These platforms decide who gets more visibility—not based on service quality, but on who pays them more.
“RedBus didn’t build this industry—we did. But today, they control our customers.”
For example, even if an operator has top ratings and great reviews, they can still be ranked lower than someone who pays for a higher position.
That’s the reality today—money, not merit, decides who gets bookings.
ZA: Many operators rely heavily on online ticketing platforms. What’s your take on them? Have they helped or hurt the industry?
CR: There was a time when online booking platforms like RedBus, Paytm, and Abhibus helped bring in more passengers. Now, it’s all about money.
Earlier, if you provided excellent service, maintained good reviews, and had high ratings, you’d automatically be placed higher on the platform. But now if you pay, you get visibility. If you don’t, you’re pushed to the bottom.
A bus operator could have the highest ratings and best reviews, but if someone else pays more commission to RedBus, they will be listed higher. You can literally jump from position 25 to position 4 just by paying extra. Is that fair? Absolutely not.
“The industry has shifted from rewarding quality to rewarding those who can pay more. This isn’t competition—it’s pure commercialization.”
ZA: With online ticketing growing, what is Nakoda Travels’ strategy to stay ahead?
CR: Online booking is here to stay because it’s convenient for passengers. Earlier, people had to travel to a booking office, stand in line, and purchase a ticket. Now, with just a few clicks, they can secure a seat from their phone.
But let’s be clear: Online ticketing didn’t create demand. The buses were always full before RedBus even existed. These platforms just made booking easier.
That’s why we focus on service, not ranking manipulation. We don’t play the pay-to-win game; instead, we ensure our buses are on time, clean, and provide a seamless journey.
Because ultimately, even if RedBus pushes an operator up, if their service is bad, passengers won’t return.
Also Read: Here’s How to Improve your Bus AC Cooling This Summer
ZA: Passenger expectations have changed a lot. What do they demand today?
CR: A decade ago, passengers cared about just one thing—getting from Point A to Point B. That’s it.
But today, they want comfort, safety, convenience, and technology-driven services. If an operator doesn’t keep up, they will lose passengers to someone who does.
One of the biggest shifts has been in real-time tracking. Earlier, passengers would just wait for their bus, unsure of its location. Today, if a bus isn’t trackable on GPS, people get frustrated. They want to know the exact location and expected arrival time.
And of course, hygiene and cleanliness matter more than ever. A decade ago, people didn’t complain much if a rest stop wasn’t great.
Today, a bad washroom or an unclean seat can mean a negative review, which directly impacts bookings.
Passengers aren’t just buying a ticket anymore—they’re buying an experience.
Also Read: 6 Ways Operators Can Improve Bus Ratings on redBus
ZA: Service is everything in this business. What are the most important aspects you focus on?
CR: The three most important factors for me will be:
- On-time departures: If the bus is scheduled to leave at 10 PM, it must leave at 10 PM. A delay of even 5 minutes can annoy passengers.
- Well-maintained rest stops: Bus journeys are long, and passengers need decent, clean, and affordable places to eat. We ensure our buses stop at good-quality restaurants with proper facilities.
- Timely arrivals: Nobody wants to be late. If a bus is supposed to reach at 6 AM, passengers expect it on time unless there are unavoidable delays.
ZA: Branding and marketing play a bigger role than ever. How important is it for operators today?
CR: In today’s day and age, branding is everything. But let me tell you something most people won’t admit—branding isn’t just about advertisements.
You can spend lakhs on hoardings, social media ads, and promotions, but if your service is bad, word-of-mouth will destroy your brand.
Today, if a bus breaks down frequently, has rude staff, or dirty interiors, one passenger will take a video, post it online, and that single video can damage your reputation overnight. That’s why our focus is on service first, marketing second.
For me, the best marketing is a satisfied passenger telling others to choose Nakoda Travels. That’s how we’ve built loyalty over decades.
“You can buy ads, but you can’t buy trust. In the bus industry, word-of-mouth is the real branding.”
ZA: What are your views on electric buses?? What do you think are the main challenges hindering private sector participation in the government’s push for electric bus fleets?
CR: Electric buses are too expensive to operate. No private operator can afford them without heavy government subsidies.
Secondly, there’s no charging infrastructure for highways. Where are we supposed to charge these buses?
And finally, Indian electric bus manufacturers don’t even approach private players like us. They focus on government contracts, ignoring the intercity private sector completely.
Unless these problems are solved, I strongly believe that electric buses will remain a dream for private operators like us.
Also Read: IntrCity’s Manish Rathi on the Road Ahead for Electric Bus Adoption in the Private Sector
ZA: What are the biggest challenges you face today as a bus operator?
CR: Every private bus operator is fighting invisible battles—against regulations, corruption, and unfair practices.
First, government harassment is a massive issue. It doesn’t matter how compliant you are—every private bus has fines worth ₹1 lakh or more every year.
Why? Because traffic police randomly take photos of buses and fine us for “traffic obstruction.” But where else are we supposed to pick up passengers?
Second, aggregators like RedBus have shifted control away from operators. Earlier, if you had good service, passengers trusted your brand. Today, they trust the platform. And these platforms prioritize operators who pay them the most, not those who provide the best service.
Then there’s the issue of foreign competition. Companies like FlixBus entered the market with ₹99 tickets. How do Indian operators survive against that?
Finally, rising fuel prices, toll charges, and maintenance costs keep increasing, but aggregators dictate fares and force discounts, making profitability almost impossible.
ZA: What’s your advice for new operators who want to grow in this industry?
CR: People look at the bus business and think, “Buy a few buses, put them on the road, and you’ll make money.” But that’s far from reality!
The biggest mistake new operators make is jumping in without understanding the costs and risks. They assume that if they price their tickets lower than competitors, they’ll get more passengers and automatically grow. But cutting fares too much doesn’t just hurt others—it destroys your own business.
Another major mistake is expanding too fast. Some operators think having more buses means more revenue, but in reality, it means more costs, more management, and more chances to fail. It’s better to start small, establish profitability, and then think about growth.
And then there’s government interference. If you don’t have all your licenses, paperwork, and compliance in place, you’ll be harassed endlessly. Even if you do everything right, you’ll still be targeted because the system isn’t fair to private players.
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