GREYHOUND USA SALE: BETTER INTERCITY BUS TRAVEL

By: Fabian Cotter, Photography by: courtesy Flixmobility


AN INCREASED domestic American demand for affordable, ‘sustainable’, collective mobility has contributed to German transport entity Flixmobility’s – of Flixbus and Flixtrains fame – decision to buy iconic Greyhound Lines Inc., USA, the company announced recently.

GREYHOUND USA SALE: BETTER INTERCITY BUS TRAVEL
Flixmobility co-founder and chief executive officer Jochen Engert, commented: “The continuous expansion of our services through partnerships and acquisitions has always been an integral part of our growth strategy to build our global presence. The acquisition of Greyhound is a major step forward in the US.”

With the United States’ intercity bus lines said to be a lifeline during the pandemic for communities and essential workers, these look like being expanded and enhanced following global mobility provider Flixmobility acquiring Greyhound in America ("Greyhound") - the largest provider of long-distance bus transportation in the United States - from Firstgroup plc.

This acquisition, "…marks another important step in Flixmobility’s vision to provide easy-to-use, affordable, and environmentally friendly travel for consumers across the globe," the company explains. 

The purchase brings together Flixbus’ innovative global technology and shared mobility expertise with Greyhound’s iconic nationwide presence and experience, creating a company that will be, "…better able to service the needs of intercity bus travellers in the U.S."

"Intercity bus lines were a lifeline during the pandemic for communities and essential workers and, as economies re-open, they will be a tremendous driver for sustainable growth across the country," it confirmed in an online press statement.

The Flixbus Global network serves more than 2,500 destinations in 36 countries outside of the US with 400,000 daily connections, it states. Greyhound currently connects approximately 2,400 destinations across North America with nearly 16 million passengers each year, it adds.

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AWAY FROM CARS

Flixmobility co-founder and chief executive officer André Schwämmlein, said: "Consumers across North America are increasingly seeking affordable, comfortable, smart and sustainable mobility solutions. A compelling offering will draw significantly more travellers away from private cars to shared intercity bus mobility."

"Together, Flixbus and Greyhound will be better able to meet this increased demand.

"As our business continues to recover from the effects of the pandemic, we will replicate the success that we have already achieved in 36 countries outside of the U.S. with our innovative and customer centric approach," he said.

As Flixmobility explains, buses as a ‘sustainable’ and accessible alternative are now more important than ever. Fluctuations in the cost of gas, the recent escalation of car prices, and ‘climate change’ concerns have increased the interest of many consumers in finding alternatives to individual car usage.

The company says it is, "…operating at the forefront of this global mega-trend, and the acquisition of the iconic Greyhound business will help the company realise its vision to offer sustainable and affordable travel to everyone."

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COMMON VISION

Flixmobility co-founder and chief executive officer Jochen Engert, commented: "The continuous expansion of our services through partnerships and acquisitions has always been an integral part of our growth strategy to build our global presence. The acquisition of Greyhound is a major step forward in the US."

"The Flixbus and Greyhound teams share a common vision to make smart, affordable and sustainable mobility accessible to all."

Firstgroup plc executive chairman David Martin, said: "The sale of Greyhound to Flixmobility is part of our portfolio rationalisation strategy to refocus Firstgroup on its leading UK public transport businesses."

"The strength of Greyhound is its people, and I would like to thank them for their unwavering commitment to their customers and communities.

"As part of Flixmobility, I am confident that Greyhound will be well placed to continue to grow and develop their iconic services for many years to come." 

Firstgroup has reached agreement with Neptune Holding Inc. (the 'Buyer'), a corporation fully controlled by Flixmobility, to sell Greyhound Lines, Inc., the US Greyhound operating business (including its vehicle fleet, trademarks, and certain other assets and liabilities) for an enterprise value on a debt-free/cash-free basis of c.$46m plus unconditional deferred consideration of $32m with an interest rate of 5 per cent per annum.

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ABOUT FLIXMOBILITY

Flixmobility started in Germany (München/ Munich) in 2013 by Jochen Engert, Daniel Krauss and André Schwämmlein, with the aim to deliver a revolutionary means of travel that combined technological advances, e-commerce capabilities, and sustainable transportation, it explains.

During the past eight years, the company has demonstrated significant success, with Flixbus growing to become Europe’s largest intercity bus network, helping more than 62 million people in 2019 reach their destinations, it adds. 

Flixbus USA launched in 2018 with destinations across the Southwest, including Los Angeles, CA, Las Vegas, NV, and Phoenix, AZ. Since then, the Company has expanded its operations to facilitate travel between additional cities in the Southwest, South, Northeast and Pacific Northwest.

Flixmobility is a mobility provider offering new alternatives for convenient, affordable and environmentally friendly travel via the Flixbus and Flixtrain brands, it explains.

With a unique approach and innovative technology, the company has quickly established Europe's largest long-distance bus network and launched the first green long-distance trains in 2018, as well as a pilot project for all-electric buses in Germany, the US and France, it confirms.

Since 2013, Flixmobility has changed the way hundreds of millions of people have travelled throughout Europe and created tens of thousands of new jobs in the mobility industry, it says.

In 2018, Flixmobility launched Flixbus USA to bring this new travel alternative to the United States. 

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