FlixBus is set to take on its U.S. rivals Greyhound and Megasbus in its bid to expand its services there.
On Wednesday, FlixBus, a German long-distance bus firm disclosed its plan of expanding its services to the United States and take on its U.S. rivals, including Megabus and Greyhound.
“There is a significant shift in the American transport market at the moment. Public transportation and sustainable travel is becoming more important,” said Andre Schwaemmlein, FlixBus’ founder and manager, in a statement.
FlixBus has gained increased traction in European long-distance routes following the liberalization of Germany’s inter-city bus services in 2013.
It not only survived but thrived on a fierce price war and has boosted its market share in Germany to more than 90%, making its bright green coaches a common sight on German motorways.
Significantly, it does not own any of the buses but rather works with local and regional partners.
In its statement, FlixBus stated it had already sent a small team to LA to start setting up a base for its U.S. business. It has yet to decide on which routes it will start its bus service in the U.S.
Going by the results of a recent study, which showed that U.S. bus companies and the Amtrak passenger rail system is being squeezed due to low prices of gasoline.
According to data compiled by researchers from the Chaddick Institute, bus services, such as BoltBus and Megabus have registered declining passengers as a result revenues have slipped significantly.
It is likely that FlixBus will face an uphill battle in the U.S.