German logistics service provider FlixBus to take over rival Eurolines

FlixBus will integrate the long-distance routes of Eurolines and isilines to expand European reach

The company aims to entice more passengers by offering more complete and diverse services

FlixBus, the Germany-based bus logistics start-up backed by General Atlantic, Daimler, Silver Lake and others has recently confirmed that it would be signing a deal with European public transport giant Transdev to acquire Eurolines.

Sources familiar with the matter mentioned that terms regarding the potential deal have not been disclosed yet. Apparently, FlixBus has never disclosed its valuation or how much money it has raised till date.

For the record, FlixBus is active across 30 countries, including the U.S. and is planning to expand its services particularly in Europe with the help of this acquisition. The firm has been able to build a network similar to Uber, but for managing bus logistics, passengers and drivers on intercity routes.

FlixBus CEO and founder, Jochen Engert stated that this acquisition would reinforce the company’s position as a leader in France and allow it to expand its European reach further, with the integration of long-distance route networks of Eurolines and isilines. The integrations would enable FlixBus to offer even more diverse and complete services for enticing larger number of passengers, Engert said.

The sources informed that as part of the exclusive discussions before the deal is finalized, the two companies are presently in negotiations with workers’ unions. FlixBus is currently the largest bus service network in Europe, with routes in 29 nations and had served over 45 million passengers in 2018. Rumors suggest the firm is valued in excess of $1 billion and would also be looking to go public soon.

FlixBus and Eurolines, just like Uber, do not take responsibility of the capital expenditure and operational costs involved in vehicle fleet ownership. They instead offer a service to bus companies having their own fleet of vehicles and provide them with an efficient ticket selling network as well as organize schedules around their services.