First Glasgow Alexander Dennis Enviro 400MMC
Greyhound heads off into the sunset….
FirstGroup has completed its exit from the United States of America by selling its Greyhound long-distance coach operation to FLiXBUS
A statement released to the Stick Exchange this morning (21 October 2021) said ‘FlixMobility, global mobility provider of the FLiXBUS and FlixTrain brands, has announced this morning it has acquired Greyhound Lines, the largest provider of long-distance bus transportation in the United States, from FirstGroup plc.
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 travelers 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. The FLiXBUS Global network serves over 2,500 destinations in 36 countries outside of the US with 400,000 daily connections. Greyhound currently connects approximately 2,400 destinations across North America with nearly 16 million passengers each year.
André Schwämmlein, Founder and Chief Executive Officer of FlixMobility, said, “Consumers across North America are increasingly seeking affordable, comfortable, smart and sustainable mobility solutions. 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.”
Jochen Engert, Founder and Chief Executive Officer of FlixMobility, 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."
David Martin, Executive Chairman, FirstGroup plc said: “The sale of Greyhound to FlixMobility is part of our portfolio rationalization 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”.
On February 7, 2007, United Kingdom (UK) transport group FirstGroup purchased Laidlaw International for $3.6 billion, which had purchased the Greyhound brand in 1998. The deal closed on September 30, 2007 and the acquisition was completed on October 1, 2007.. Although FirstGroup's interest was primarily the school and transit bus operations of Laidlaw, subsequently renamed First Student, FirstGroup decided to retain the Greyhound operations and in 2009 exported the brand back to the United Kingdom as Greyhound UK. For a while. it tried to position this as a higher spec coach brand in the UK, including an overnight coach service between Glasgow and London but it was a half-hearted affair. It was launched to much fanfare in 2009 but by the end of 2012 was down to one route, between Swansea and Bristol Airport. The brand was withdrawn in 2015 when that route moved over to low-floor buses.
However, First did better in the US with Greyhound. It revamped its image, improved its terminals and the fleet, cut underperforming services and it even launched a low-cost service competing with Megabus called Bolt Bus, promising more ‘bang for your Buck’ a reference to the $1 fares. It turned Greyhound back into a serious competitor to the low-cost airlines, offering better point to point connections. However, it’s student transit and school bus services were where they serious money was made but as long as Greyhound didn’t cause any serious issues, First was happy to keep it. One aspect of Greyhound’s business is its parcel business, where parcels are carried on the bus which are then distributed using the network. So it’s more than just a coach company.
However to reduce its debt pile and placate shareholders, First agreed to sell off its US businesses. Initially, they had wanted a sell-off of the UK bus and rail business but that was rejected as it felt the US operations could raise more funds. The sale process was delayed by the pandemic but earlier this year an agreement was reached to sell off First Student to EQT Partners, a global investment company in April 2021 for $3.1 billion. However they were not interested in Greyhound and it remained on the market.
The sale of Greyhound to FLiXBUS increases that company’s share of the US market substantially and also takes it into Canada, as Greyhound operates some cross-border services. However, Greyhound Canada, which ran solely in that beautiful country, had itself closed during the pandemic and didn’t re-appear. At the moment it’s unclear what’ll happen to the iconic Greyhound brand and whether it’ll be still be used. The brand, which first began running in 1914 although the Greyhound name didn’t get fully adopted until 1929, it’s part of the fabric of America and it’ll be sad to see it go.
It’ll also mark the second of the big UK groups to exit ventures in the States, leaving only National Express as the only UK group there. It leaves First focusing solely on the UK market and an example of its UK business is 33435 (SN66WGF), glistening in the autumn sunshine. It was new to First Scotland East in 2017 but had been transferred to First Glasgow in 2019.
First Glasgow Alexander Dennis Enviro 400MMC
Greyhound heads off into the sunset….
FirstGroup has completed its exit from the United States of America by selling its Greyhound long-distance coach operation to FLiXBUS
A statement released to the Stick Exchange this morning (21 October 2021) said ‘FlixMobility, global mobility provider of the FLiXBUS and FlixTrain brands, has announced this morning it has acquired Greyhound Lines, the largest provider of long-distance bus transportation in the United States, from FirstGroup plc.
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 travelers 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. The FLiXBUS Global network serves over 2,500 destinations in 36 countries outside of the US with 400,000 daily connections. Greyhound currently connects approximately 2,400 destinations across North America with nearly 16 million passengers each year.
André Schwämmlein, Founder and Chief Executive Officer of FlixMobility, said, “Consumers across North America are increasingly seeking affordable, comfortable, smart and sustainable mobility solutions. 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.”
Jochen Engert, Founder and Chief Executive Officer of FlixMobility, 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."
David Martin, Executive Chairman, FirstGroup plc said: “The sale of Greyhound to FlixMobility is part of our portfolio rationalization 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”.
On February 7, 2007, United Kingdom (UK) transport group FirstGroup purchased Laidlaw International for $3.6 billion, which had purchased the Greyhound brand in 1998. The deal closed on September 30, 2007 and the acquisition was completed on October 1, 2007.. Although FirstGroup's interest was primarily the school and transit bus operations of Laidlaw, subsequently renamed First Student, FirstGroup decided to retain the Greyhound operations and in 2009 exported the brand back to the United Kingdom as Greyhound UK. For a while. it tried to position this as a higher spec coach brand in the UK, including an overnight coach service between Glasgow and London but it was a half-hearted affair. It was launched to much fanfare in 2009 but by the end of 2012 was down to one route, between Swansea and Bristol Airport. The brand was withdrawn in 2015 when that route moved over to low-floor buses.
However, First did better in the US with Greyhound. It revamped its image, improved its terminals and the fleet, cut underperforming services and it even launched a low-cost service competing with Megabus called Bolt Bus, promising more ‘bang for your Buck’ a reference to the $1 fares. It turned Greyhound back into a serious competitor to the low-cost airlines, offering better point to point connections. However, it’s student transit and school bus services were where they serious money was made but as long as Greyhound didn’t cause any serious issues, First was happy to keep it. One aspect of Greyhound’s business is its parcel business, where parcels are carried on the bus which are then distributed using the network. So it’s more than just a coach company.
However to reduce its debt pile and placate shareholders, First agreed to sell off its US businesses. Initially, they had wanted a sell-off of the UK bus and rail business but that was rejected as it felt the US operations could raise more funds. The sale process was delayed by the pandemic but earlier this year an agreement was reached to sell off First Student to EQT Partners, a global investment company in April 2021 for $3.1 billion. However they were not interested in Greyhound and it remained on the market.
The sale of Greyhound to FLiXBUS increases that company’s share of the US market substantially and also takes it into Canada, as Greyhound operates some cross-border services. However, Greyhound Canada, which ran solely in that beautiful country, had itself closed during the pandemic and didn’t re-appear. At the moment it’s unclear what’ll happen to the iconic Greyhound brand and whether it’ll be still be used. The brand, which first began running in 1914 although the Greyhound name didn’t get fully adopted until 1929, it’s part of the fabric of America and it’ll be sad to see it go.
It’ll also mark the second of the big UK groups to exit ventures in the States, leaving only National Express as the only UK group there. It leaves First focusing solely on the UK market and an example of its UK business is 33435 (SN66WGF), glistening in the autumn sunshine. It was new to First Scotland East in 2017 but had been transferred to First Glasgow in 2019.