This is also where Flix’s tech comes into play. Like other transportation startups such as Uber but also those that have focused on longer-distance journeys like BlaBlaCar, Flix’s approach has been to take a legacy service — in this case buses (it also operates trains) — and apply better algorithms to determine pricing and routing and timing for the different buses on the network. Indeed, it has often been referred to as the “Uber of buses.”
The deal signifies a huge move for Flix to double down not just on bus transport, but the U.S. market, where it was already active but with a significantly smaller profile. FlixBus, as the service is known, is today active in more than 2,500 destinations in 36 countries outside the U.S., working across 400,000 daily connections. Greyhound is actually nearly as big: It covers 2,400 destinations in North America, with almost 16 million passengers annually. (Flix’s last reported customer numbers were from 2019, pre-pandemic, and were more than 62 million; those figures would have drastically dropped in recent times given distancing and travel restrictions around COVID-19, which could be one reason why it does not provide more updated numbers.)
The deal is not about expanding Flix’s network, but also presence and mindshare. Greyhound is nothing short of an iconic presence. In a country fixated on travel, it has figured in dozens of famous songs, films and other art forms, albeit not always in the most flattering of lights.
FlixMobility, the $3 billion-German transportation startup that has doubled down on long distance buses and slowly and quietly gobbled up transit lines and operations across Europe, today announced a big move to raise its game in the U.S. The company announced that it is acquiring Greyhound Lines, the iconic U.S. bus network, from U.K.-based owner FirstGroup. Flix said the deal — which 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 annum alongside that.*
It also generally does not own its fleet, working with third-party independent bus companies to operate vehicles that it brands itself. (I think it’s very unlikely to drop the Greyhound branding altogether however, given the iconic status of it.) However, this deal appears to represent a shift in that strategy. When the company raised its monster $650 million round earlier this year — a round it specifically said would be used to expand in the U.S., a long-desired frontier for the startup — we raised the question of whether it would, longer term, continue to pursue a model where it does not directly own buses, but instead works with third parties that take on that capital investment themselves (not unlike Uber). The Greyhound deal will include a fleet so it may well be moving further into that realm now.
Everything you need to know: What changes for me as a customer?
For now, everything remains the same. FlixBus and Greyhound will continue to operate independently from each other. Tickets for travel on FlixBus can be purchased from FlixBus and tickets for travel on Greyhound can be purchased from Greyhound. When you are ready to board, you will still see the familiar FlixBus and Greyhound buses at your stop. Does this affect trips I have booked with FlixBus or Greyhound?
No, current bookings are not affected by the FlixBus purchase of Greyhound and tickets are not interchangeable at this time. How do I reach customer service?
Passengers who booked a trip with FlixBus can reach customer service here. Passengers who booked a trip with Greyhound can continue to reach customer service here. Where can I book a ticket and where can I get information on the bus schedule and bus stop?
FlixBus and Greyhound will continue to operate independently from each other. Passengers can get information and book their ticket for travel on Flixbus either via the FlixBus Website or Mobile App. Passengers can get information and book their ticket for travel on Greyhound via the Greyhound Website and the Greyhound Mobile App, by calling 1-800-231-2222 or at Greyhound stations throughout the U.S. Can I use my FlixBus ticket for travel on Greyhound (and vice versa)?
No, tickets are not interchangeable at this time. We will provide plenty of advance notice via email, web and mobile related to any changes, for example, when customers can use their tickets interchangeably between Greyhound and FlixBus. What happens to my Greyhound Road Reward points, and can I use my Road Rewards to buy FlixBus tickets?
Effective July 7, 2022, the Road Rewards program has ended. Unexpired rewards must be used by their individual expiration date or by December 15, 2022, whichever comes first.
For more info, visit https://www.greyhound.com/en/help-and-info/road-rewards. Since FlixBus and Greyhound will continue to operate independently from each other, you are not able to use your Road Rewards to buy FlixBus tickets.
Flix was started in Germany in 2013 by Jochen Engert, Daniel Krauss and André Schwämmlein to deliver a revolutionary means of travel that combined technological advances, e-commerce capabilities, and sustainable transportation. Over the past few years, the company has demonstrated significant success, with FlixBus growing to become Europe’s largest long distance bus network operating in more than 40 countries.
FlixBus Inc. USA launched in 2018 with 27 destinations across major southwestern cities, including Los Angeles, CA, Las Vegas, NV, and Phoenix, AZ. Since then, the Company has expanded its operations to offer sustainable transportation to over 200 cities across the United States and Canada with daily connections in the Southwest, South, Northeast and Pacific Northwest.