Ride-sharing and ride-hailing services are no more a new trend in the transportation industry. Some of the transport giants like Uber, Didi, and Lyft have gained popularity through offering on-demand private transportation services. However, with all these renowned transportation network companies, some adjacent business of bus services are also entering the market.
A German startup, FlixBus, has already built an Uber-like network for managing passengers, drivers, and bus logistics on intercity routes. Now, the company is in process to sign a deal with Transdev – a European transport giant, to acquire Eurolines. However, FlixBus aims to acquire Eurolines, a competing service, only to dominate in the Europe’s transportation market.
FlixBus CEO Jochen Engert is optimistic about strengthening their foothold as a market leader in France with the acquisition. He further stated that with the integration of Eurolines, FlixBus would be offering diverse services to entice more passengers. Furthermore, the company is targeting to expand their European reach and become the first preference of European travelers.
Currently FlixBus is Europe’s biggest bus service network, serving approximately 45 million passengers. However, the company strictly denied to disclose the terms of the deal with Transdev along with their valuation, TechCrunch reported.
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On the other hand, Transdev ensures that the decision of their exclusive negotiations with FlixBus is merely beneficial for them. Transdev’s CEO added that fixing the deal with FlixBus would enable them to focus more on the business’s core resources. Transdev is now aiming towards refurbishing their B2B transportation services through technological innovations in order to improve passengers’ experiences.
The deal between FlixBus and Transdev acts as a giant consolidation move to various bus services. This is a huge revolution to the services which helps managing bus movement, instead the bus companies doing themselves. Furthermore, FlixBus and Eurolines both follow Uber’s business strategy. They provide excellent services to bus companies with their own fleets, to offer them an efficient network to sell tickets. FlixBus also offers buses with Wi-Fi and other technological features.
However FlixBus’ intention behind signing the deal is not to take up all the transport services in Europe. The company is targeting to compete against other bus companies in the region.