Greyhound CEO Dave Leach Explains Decision to Sell to Germany-based FlixMobility

[TexasTowelie]

German-based FlixMobility acquired Dallas-based Greyhound Lines from FirstGroup. FlixMobility, which has a $3 billion valuation, has established Europe’s largest long-distance bus network, launched the first green long-distance trains in 2018, and started a pilot project for all-electric buses in Germany, the U.S., and France.

FlixBus’ will combine its more than 2,500 destinations in 36 countries with 400,000 daily connections–all outside the U.S.–with Greyhound’s 16 million annual travelers and 2,400 destinations in North America.

We asked Greyhound CEO Dave Leach a few questions about the deal.

D CEO: Why did this sale make sense for Greyhound?

DAVE LEACH: “FirstGroup has been seeking to sell Greyhound Lines for some time. The purchase combines Greyhound’s iconic nationwide presence and experience with FlixBus’ innovative global technology and shared transportation experience. Together we’re able to better serve the intercity bus needs of communities across the U.S.”

Read more: https://www.dmagazine.com/business-economy/2021/10/greyhound-ceo-dave-leach-explains-decision-to-sell-to-germany-based-flixmobility/

[elleng]

1. 'Flixbus (German pronunciation: ['flɪksbʊs]; styled FLiXBUS) is a German brand

that offers intercity bus service in Europe and the United States. It is owned by FlixMobility GmbH, which also operates FlixTrain and FlixCar.

FlixBus does not own any buses and does not employ drivers; its services run in co-operation with regional bus companies. Local partners are responsible for the day-to-day running of routes, while Flixbus is responsible for permits, network planning, marketing, pricing, quality management and customer service and retains 25–30% of the ticket price, remitting the remainder to its operating partners.[5] This business model is highly scalable and has enabled the company to grow quickly.[6] As of 2018, the company has a 90% market share of intercity bus travel in Germany.[7]

FlixBus emphasizes the sustainability of its buses, lower prices, and free Wi-Fi on board. Customers can choose to offset their carbon footprint when buying a ticket online. The offset costs between 1–3% of the ticket price and goes to internationally certified climate projects.[8]'

https://en.wikipedia.org/wiki/Flixbus

[Kid Berwyn]

2. There's hope.

Here’s hoping for a better form of mass transportation tomorrow.



Personally, I love surface travel. Compared to airlines these days, one meets a nicer class of people.

[MineralMan]

3. I haven't been on a Greyhound bus since the 1960s.

Their network is much diminished from where it was back then, when bus travel was the first choice for most people.

My most notable trip was a cross-country one in 1965, from Charleston, SC to Santa Barbara, CA. I went on that trip without a break beyond normal meal stops. $68. Just over 72 hours on The Dog. A fascinating journey when I was just 19 years old. I had been driving all around the country, but my wheezing 1953 Chrysler New Yorker threw a rod in Charleston, ending my "journey of discovery."

I sat next to at least 30 different people on that trip, each with a story to tell.

[marble falls]

4. Sounds good to me. Greyhound put a great brand into the dirt by not keeping up ...

... with the times. I hope they go after an under-served market: small towns.