Hello dear readers,
While usually CityBits highlights an existing urban initiative, today I’m trying out a new segment. Instead of a deep dive on a specific city, this update will be a 2-3 minute quick reaction to a recent, relevant headline. Today, it’s the $78M USD acquisition of Greyhound by FlixMobility.
What happened?
Greyhound, the long-beloved but recently-struggling American bus company was acquired by German transportation startup FlixMobility. The acquisition gives FlixMobility rights to the Greyhound brand name and their entire fleet of vehicles, but crucially does NOT include Greyhound stations or bus depots (their real estate).
Why should I care?
Now, I understand that not everyone cares about urban travel and buses as much as I do, but give me two minutes to try and convince you that it’s still a relatively big deal.
Greyhound has been around since 1913, and is not just a major player in the industry, the brand itself also carries significant cultural capital in the US. FlixMobility has a large European presence already but this acquisition represents their biggest move into the US market thus far, and that they get to do so while retaining the Greyhound trademark is an enormous first step. It’d be like if I wanted to start a singing career and right off the bat I was allowed to use the name “Frank Sinatra.” I’d probably have a pretty good head start1 just from the name recognition alone.
FlixMobility is relying on that, but they’re also not just taking over and running Greyhound as it is today. I expect big things from this acquisition because FlixMobility is not a bus company the way that Uber is not a car company. They aren’t going to engineer a better bus engine, they’re going to use sophisticated analytics and modern strategies to better design their routes of operation, set price points, and modernize the brand’s image.
What does this have to do with cities?
I said earlier that this acquisition does NOT include Greyhound stations. This is key because it means FlixMobility is betting that they can leverage existing transit hubs or informal pickups to run buses out of. By “transit hubs” I just mean places that already have a lot of people coming and going (e.g. train stations, airports, your mom’s house), and they are also partnering with some universities and establishing suburban pickup locations as well.
The implication here is that we’re probably going to see a very different network of coverage, and (hopefully!) more city to city routes, which I’m hugely in favor of. Not only that, but with the move away from dedicated Greyhound stations, I expect to see pickup points popping up in more convenient, downtown locations. It’s a tactic used by other budget bus lines (though not without its controversy), but FlixMobility would be the largest and most legitimate carrier to use this method, making it a game changer for intercity travel.
While bus travel can’t compete with railroads or planes in terms of speed or passenger volume, it’s much cheaper, and often is a good interim solution because the roads are already built so you don’t need to wait 5-10 years for new railroad tracks to be laid down or an airport to be built. This means that intercity travel will likely become a whole lot easier and more accessible.
Okay, wrap it up
It’s still a little early to say, but I’m hopeful that this acquisition can lead to:
An improvement/modernization in the quality of Greyhound’s service
A massive uptick in the utilization of buses as a means of intercity travel in the US
An influx of new riders. It’s a great sign that 40% of FlixMobility users in Europe were first time bus riders, because it suggests the company knows how to attract a new generation of would-be riders who grew up only knowing automobiles and planes.
I know some of you may have never ridden an intercity bus, but I think they’re great, and I think this development will only makes them greater. Buses are an important means of travel for many riders who can’t afford plane tickets or who lack access to a car, and I’m hopeful about their continued improvement and expanded service that may grow out of the new management.
That’s it for the first (and possibly last?) edition of “CityBits Rapid Response”.2 Let me know in the comments or on Twitter what you thought, absolutely DEMOLISH that like button, and I’ll see you next week with a proper full-length article.
Bus it,
-Max
And also probably have mob ties, but that’s a whole other newsletter
CityBlitz: Greyhound Acquired by FlixMobility
Thanks Max for this rapid response! Seems like Greyhound's acquisition could actually lead to substantial changes in intercity travel in the US. Makes me also wonder about the future of low-carbon transportation alternatives in the States. Of course, bullet trains are expensive, take decades to be planned and build but they are an effective solution to make a dent in driving or flying, chiefly along densely populated urban corridors. What's the status of the conversation in the US?