So flixbus, the German uber-like bus service announced today that they are almost done closing a deal to acquire, Eurolines, a competing service currently owned byTransdev, a European public transport giant.
Flixbus is active in the US and almost 30 countries but they plan on expaning into Europe. jochen Engert, founder and CEO of FlixBus said in a statement that “This acquisition would strengthen our position as market leader in France and allows us to expand our European reach even further by integrating the Eurolines and isilines long-distance route networks,” “With this integration, FlixBus would have an even more-complete and diverse offer to entice even more passengers. We aim to be the number one choice for travelers across Europe.” further details about the deal has not been disclosed yet.
As we all know, it is currently the largest bus service network, with routes in 29 countries and serving some 45 million passengers in 2018. And there are rumors around saying that they are closing in on an IPO and are valued at $1 billion. Transdev on the other hand raised an impressive $400 million early this year and were last valued at around $1.3 billion.
CEO Thierry Mallet said in a statement that “The decision to enter exclusive negotiations withFlixBus regarding the potential divestment from Eurolines is in line with Transdev’s strategic plan,” said Mallet in a statement. “It would enable us to focus our resources on the core of our business, public transit and B2B transportation services by combining performance at best cost, technological and digital innovation, specifically to improve the customer experience.”
Similar to Uber, FlixBus and Eurolines do not take on the capital expenditure and operational costs of owning fleets of vehicles. Instead, they provide a service to bus companies with fleets of their own to provide them with an efficient network to sell tickets and organise schedules around their services.
This acquisiton is sure to give flixbus a push into the european market, and that also means it won’t too long before we begi seeing those green flixbuses in the streets of europe.