FlixMobility is acquiring Greyhound to expand the transportation startup’s U.S. intercity bus services.
This $78 million 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 $3 billion company said in a statement announcing the deal.
“Consumers across North America are increasingly seeking affordable, comfortable, smart and sustainable mobility solutions,” said André Schwämmlein, Founder and Chief Executive Officer of FlixMobility. “A compelling offering will draw significantly more travelers 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.”
FlixBus USA launched in 2018 with destinations across the Southwest, including Los Angeles, Las Vegas and Phoenix. Since then, the company has expanded its operations to facilitate travel between additional cities in the Southwest, South, Northeast and Pacific Northwest.
‘Win’ for industry
Many United Motorcoach Association members partner with FlixBus to provide transportation services across the U.S.
“As an innovator of scheduled bus service, the Flix Bus acquisition of Greyhound should bring new energy to the legacy carrier while reenergizing the public’s use of scheduled bus service,” said Scott Michael, UMA President and CEO. “We view the news as a win for Flix Bus and a win for the industry.”
Flix is acquiring the iconic U.S. bus network from UK-based owner FirstGroup for $78 million, according to TechCrunch. The deal – includes a vehicle fleet, trademarks, and related assets and liabilities — has an enterprise value on a debt-free/ cash-free basis of $46 million, with an unconditional deferred consideration of $32 million with an interest rate of 5% per year alongside that, the company said
The purchase brings together FlixBus’s innovative global technology and shared mobility expertise with Greyhound’s nationwide presence and experience, creating a company that will be better able to service the needs of intercity bus travelers in the U.S.
Lifeline 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.
The FlixBus Global network serves over 2,500 destinations in 36 countries outside of the US with 400,000 daily connections. Since its launch in 2013, FlixBus has grown into Europe’s largest intercity bus network, helping more than 62 million people in 2019 reach their destinations.
Since its launch in 2013, FlixBus has grown into Europe’s largest intercity bus network, helping more than 62 million people in 2019 reach their destinations.
Flix continues to be a major industry voice in promoting buses as a sustainable and accessible alternative that are more important than ever. Fluctuations in the cost of gas, the recent escalation of car prices, and climate change concerns have increased consumers’ interest in finding alternatives to individual car use.
The acquisition of Greyhound will help the company realize its vision to offer sustainable and affordable travel to everyone, according to Jochen Engert, Founder and Chief Executive Officer of FlixMobility.
“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,” said Engert. 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.”
Over the past eight years, FlixBus has quickly become Europe’s largest intercity bus network, transporting more than 62 million people in 2019 reach their destinations.