Digital payments company, MobiKwik has launched a new product for users who frequently travel by bus called TravelPass which will allow users to avail a 5% discount on the base price of every bus ticket booked via MobiKwik for a period of one year. Note that Rs 50 is the introductory price for the first 10,000 users who buy it, following which TravelPass will cost Rs 250.
Users will also get free travel insurance cover of up to Rs 3 lakh on every journey. The company claims that it will be adding more features to TravelPass, including hotels bookings.
As of March 2017 (data from MediaNama’s Digital Payments in India report), Mobikwik had 55 million wallet users and was processing around 3 million daily transactions. The average ticket size of transactions was Rs 500, and a MobiKwik user transacted via the wallet 7-10 times every month.
A product like TravelPass will help MobiKwik increase repeat usage of its wallet.
Earlier this year, in February, the company had said that it will invest Rs 300 crore for expansion this year, including to acquire over 100 million users. It added that the money will be used to set up offices in 13 different cities by the end of Q1 2017, and grow its merchant base from 1.4 million to 5 million by the end of the year. MobiKwik also introduced SUPERCASH, a loyalty initiative for users which will also provide reward points for purchases made at mom and pop shops.
Passes are a win-win for users & companies
The concept of offering users passes or a sort of subscription product has been gaining in popularity among online companies. It is a win-win offer both the user and the company. Users get discounted rates, preferential service, etc., while companies get repeat users, besides generating revenue by selling the pass in the first place.
- In June, Uber has introduced UberPASS in Mumbai, Delhi, Chennai and Kolkata, which offers users flat fares, discounted fares, highly rated drivers, and waivers on cancellation charges among others.
- In November 2016, Ola started selling Ola Select memberships to users for Rs 499 per month, through its app in Pune. The membership offered no peak pricing at any time, priority booking, Prime cabs at Mini fares, free WiFi, priority support, airport lounge access, and top drivers and cars, among others.
- Ola had also launched Ola Share Pass in October last year, which lets users avail single rides for Rs 40. In December last year, the company claimed that it had pre-sold 5 million Ola Share Passes. Ola added that peak pricing does not apply to these rides given their fixed rates.
- In April this year, Zomato had also introduced a subscription-based product in India and UAE called Zomato Treats. Priced at Rs 249, Zomato Treats offers subscribers a free dessert with every meal they order with participating restaurants.