FlixBus aims doubling of network by 2025

“We have launched a star network which currently connects Delhi to nine different destinations covering 46 cities along the way,” Surya Khurana, Managing Director of FlixBus India, said. “We plan on doubling down on this network and expanding it to the southern part of the country. We plan to do this in the next one year.”

Khurana added that the company is targeting Karnataka, Tamil Nadu, Telangana and Andhra Pradesh, “where there is immense demand for corporate and leisure travel”.

The company, which runs close to 6,000 active buses globally, currently connects Delhi with Lucknow, Dehradun, Chandigarh, Rishikesh, Manali, Haridwar, Agra, Varanasi and Mathura.

Buoyed by improved road infrastructure in the country and digitization of toll payment methods, Khurana said the company expects strong growth momentum for bus transportation in India. For now, FlixBus intends to focus on the air-conditioned sleeper segment based on its popularity, but it will grow the air-conditioned seater category as well.

“The reason to come to India is very simple. India has the largest addressable bus market in the world. Right now, the market is very fragmented. There are multiple small operators who have a fleet of 10-20 buses but there is no unified India-wide brand which people can consider,” Khurana said.

Launched in 2011 in Munich, the Germany-based company has presence in 43 countries across Europe, North America, South America and Asia. Flix SE, which owns FlixBus, also operates Flixtrain, FlixCar, Turkey-based Kâmil Koç, and Greyhound Lines, which is the largest inter-city bus service provider in North America.

The company brings on board third-party bus operators along with the staff on a contract and takes over the operations including rebranding of the buses and additional training for the bus drivers and conductors in line with FlixBus standards.

Hence, Flixbus operates buses or, in many cases, just handles marketing, pricing, and customer service for a commission, on behalf of bus operators.

As per the company’s latest financial results for 2023, Flix reported a 30% growth in total revenue in (calendar year) 2023 at €2 billion. This was higher than its guidance of more than 25% for the year. Last year, 81 million passengers travelled with Flix platforms compared to over 60 million in 2022, registering a growth rate of 34%.

“Based on our tech foundation, we want to strengthen our position as a global leader, driving sustainable and affordable travel for everyone,” André Schwämmlein, co-founder and chief executive officer of Flix said on 7 March while announcing the company’s earnings for 2023.

In India, the company has so far based its hub at Delhi’s Kashmiri Gate bus depot, which also has a Flix lounge to assist travellers.

While the company is assessing launch of Wi-Fi services on board, it currently offers charging points, gender seating (that is, seats next to women will be automatically reserved for other women), a 24×7 incident response team, a traffic control ward, and two-point seat belts for all seats.

A report jointly produced by the Internet and Mobile Association of India (IAMAI) and Grant Thornton Bharat says the compounded annual growth rate for state transport undertakings (STUs) is 6.36% and 7.37% for private buses. 

The report, launched in February 2024, revealed that Karnataka, Maharashtra, Tamil Nadu, Andhra Pradesh, Telangana and Uttar Pradesh are the principal markets in state transport undertakings, constituting nearly 70% of the market share. 

The top five states in total addressable market for private buses are Uttar Pradesh, Maharashtra, Rajasthan, Punjab, and Haryana, which are expected to account for around 45% share by 2026.

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Published: 28 Mar 2024, 06:15 AM IST