A new competitor is entering the American intercity transportation market: Flixbus, a German company that is just five years old, is offering rides from Los Angeles to Las Vegas for as little as $2.99. While the company adds a $2 service fee per reservation, that means a round-trip ticket is less than $8. The lowest one-way fare on Greyhound is $13.
A Flixbus in France. Flickr photo by Semvatac.
Germany deregulated its bus market in 2013, and Flixbus quickly emerged as the dominant player, with around 80 percent of the German bus market and a growing share in other European countries as well. The company works by contracting out its operations to local bus companies. Flixbus does the marketing, sells the tickets, and coordinate schedules, while the local operators provide the buses, drivers, and maintenance. Continue reading
