“We believe that we will need both brands for our plans.”
(Photo: imago / Reiner Zensen)
Flixmobility takes over the well-known US bus service provider Greyhound. This makes the subsidiary Flixbus, which has been active in the USA since 2018, in one fell swoop to number one in the American long-distance bus market. In an interview with Handelsblatt, Flixmobility CEO André Schwämmlein cites the “unique market” and the Greyhound brand, which enjoys a good reputation among passengers, as reasons for the takeover.
Schwämmlein wants to address potential customers who have never driven a bus before: “Bus is a growth market, we are convinced of that”. However, he currently sees “no need” for an IPO – even if the acquisition is fueling speculation.
Read the entire interview here:
Mr. Schwämmlein, what are you particularly interested in about Greyhound: the well-known brand, the fleet or the market?
The charm of the deal for us lies in the unique market that Greyhound serves and which complements our offer in the USA well. Flixbus operates the major main routes, Greyhound drives across the whole country. For many people in the United States, Greyhound buses are often the only way to travel. Then there is the brand. Greyhound is synonymous with bus and enjoys a good reputation among passengers.
Now your business model is the technology platform, not the operation of the buses. What do you do with over 1000 vehicles?
The operation will continue. We’re going straight to Greyhound’s headquarters in Dallas and get to know the company even better. It’s about bringing our networks together, using our Flixbus technology. That is our top priority now.
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How do you intend to turn the US long-distance bus business into a growth story again?
It’s about using our technology smartly. For example, we can address potential customers who have never driven a bus before. We can do that, we showed it in Turkey. And in the USA too, almost half of our customers are people who have never driven a bus before. So we’re gaining new customers. We are convinced that the bus is a growth market.
What are you going to do with the Greyhound brand?
Greyhound is the globally known brand in our portfolio. Flixbus has also become a strong brand in the meantime. Both have their strengths and we have to use them. We believe that we will need both brands for our plans.
Speaking of plans, now that you are number one in the US, are you going to go public anytime soon? In any case, the purchase is fueling corresponding speculation.
We are well financed, I have always said that. And we have now shown that we are making good use of investors’ money. So there is currently no need to go public. Of course, such a transaction can be good for your own equity story. But for that you have to deliver after such a takeover. And this is where work only begins now.
Thank you for the interview.
More: Flixbus buys the largest bus operator in the USA and becomes the market leader