Unlike traditional transport companies, FlixMobility did not own a fleet of buses. It just managed technology, marketing, communications, sales, IT, ticketing, quality management, customer service, and network planning. The responsibility of owning buses, hiring drivers, and operating and maintaining the buses lay with the local and regional bus companies from all over Europe, who became FlixMobility’s partners. The partners included small and medium sized bus companies. Initially, 50 companies joined hands with FlixMobility to start operations...

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DIVERSIFICATION INTO ADJACENT MARKET – RAIL

Germany’s rail sector, which was liberalized in 1994, was dominated by Deutsche Bahn that accounted for 99% of all long-distance rail journeys. In 2016, a start-up called ‘Locomore’ launched by the open-access train operator Leo Express N.V. (LEO Express) , offered a daily return service between Stuttgart and Berlin that passed through Frankfurt and Hanover at prices that were lower than what was offered by Deutsche Bahn. However, due to low demand and high maintenance costs, Locomore filed for insolvency in May 2017. ..

TOWARD SUSTAINABLE MOBILITY

As of 2018, FlixMobility connected more than 2,000 destinations in 28 countries (Refer to Exhibit V for List of Countries Connected by FlixMobility Network). The company said it provided more than 300,000 trips each day, often departing every 30 minutes. It claimed to be profitable. About FlixMobility, Christoph Gipp, managing director of IGES Institute in Berlin, said, “FlixBus (FlixMobility) isn’t a classic bus company but a highly professional sales platform. They’ve managed to get away from the stigma associated with bus travel.” .

BUMPY ROAD AHEAD?

Even though FlixMobility had created a unique position for itself in Europe, analysts believed that an increase in toll prices for buses could be the biggest challenge the company would have to face. Any change in environment protection laws was also expected to create problems for the company, as that usually involved phasing out older generation vehicles and prompting the acquisition of new vehicles and so was bound to have an impact on the cost structure. From January 2020 onward, Germany required all buses to be equipped with two wheelchair spaces. As of 2018, that facility was available in only a few buses of FilxMobility. The provision of that facility was expected to eat into both costs and time for FlixMobility..

EXHIBITS

Exhibit I:Services Offered By FlixMobility
Exhibit II: The Evolution of German Bus Market
Exhibit III: The Evolution of US Bus Market
Exhibit IV: US Partners of FlixMobility
Exhibit V: List of Countries Connected By FlixMobilility Network