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Flixbus a Smart and Green Cycling Experience for Everyone Martin Bethge, Senior Network Planning September 2018, Eurovelo and Cycle Tourism Conference Limburg Agenda

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Flixbus a Smart and Green Cycling Experience for Everyone Martin Bethge, Senior Network Planning September 2018, Eurovelo and Cycle Tourism Conference Limburg Agenda FlixBus A Smart and Green Cycling Experience for Everyone Martin Bethge, Senior Network Planning September 2018, Eurovelo and Cycle Tourism Conference Limburg Agenda 1. Outline the Cycle World @ FlixBus 2. Vertical or Horizontal? 3. Economic Viability 4. One – Minute – Summary 1 Agenda 1. Outline the Cycle World @ FlixBus 2. Vertical or Horizontal? 3. Economic Viability 4. One – Minute – Summary 2 300.000 >1.200 Daily Connections Employees 2.000 28 Destinations Countries 1.700+ 7.000+ Buses Bus Drivers 3 FlixBus, FlixTrain & Bike Equipment 2018 FlixBus D-A-CH FlixBus and Bikes FlixTrain and Bikes • Every 1-2 hours between big Nordics Launch FlixTrain 06.03.2018 cities • Oslo – Stockholm 1. Berlin – Hannover – Göttingen – • Copenhagen – Stockholm Kassel – Fulda –Frankfurt – • One to multiple buses per day Darmstadt –Heidelberg – Stuttgart per all other connections Italy 2. Hamburg – Osnabrück – • 90% of all rides are equipped • Ferrara – Torino Münster – Gelsenkirchen – with bicycle racks of 3-5 slots • Rome – Milan Duisburg – Düsseldorf – Köln • D-A-CH as driver and first mover Spain • Florence – Genova – Nice – Barcelona Available in 18 countries USA • Las Vegas – Phoenix – Tucson 4 2012 - 2018: Σ 300.000 bikes transported Yearly development Milestones 2018 2012 - 2017 2018 • Legal security for bus partners due to Vienna • Equipment level international night connections 70% Convention Connect Croatia and DACH with 5 lines • Test phase • Equipment level BeNeLux 90% • Equipment level for D-A-CH connections at 90% • Equipment level Nordics 95% • Test Italy # Bike Transportation 98,100 100,000 90,000 85,200 80,000 70,000 60,700 60,000 50,000 43,900 40,000 30,000 20,000 15,300 10,000 1,200 0 2012 2013 2014 2015 2016 2017 # Bikes 5 Current Megatrends Support Growth of Bus + Bike Market Cars as major status symbol … yet travel grows on long …with strong focus on get replaced… distances in a connected world sustainability and green energy Cars per 1,000 Inhabitants Between Growth Rate of Passenger Numbers by 18-29 Years (Germany)(1) Distance Segment until 2030(2) in km Ʃ Growth +16% 420 0-10 -1% (34%) 316 11-50 6% 294 288 276 (3) Sweet Spot Green House Gas Footprint in g/pkm 51-150 14% for LD Bus 151-300 22% 300-600 15% 211 142 600-1,000 20% 43 32 2000 2005 2010 2015E 2020E Core for Bus Product 1. Statistisches Bundesamt 2. BMVI Verkehrsverflechtungsprognose 2030 3. Umweltbundesamt 2014 6 Agenda 1. Outline the Cycle World @ FlixBus 2. Vertical or Horizontal? 3. Economic Viability 4. One – Minute – Summary 7 Vertical vs. Horizontal Bike Racks? Safety Costs Revenue Pedelecs 8 Agenda 1. Outline the Cycle World @ FlixBus 2. Vertical or Horizontal? 3. Economic Viability 4. One – Minute – Summary 9 Modern transportation companies aim for non-transportation related ancillaries. 10 Average Distance of Bike PAX higher than average customer Transportation Distance of Bike Passengers 24.8% 75.2% <500 km >500 km 11 Economic perspective: Early break-even point Key question: Is the acquisition of bicycle racks economically viable? • Two specific groups of demand of FlixBus passengers (1) 20% of all passengers with a bicycle ticket would have chosen FlixBus also without a bicycle → additional receipt = bicycle ticket (2) 80% of all passengers would have chosen a different means of transportation or would canceled the trip → additional receipts = bicycle ticket + personal ticket • → break-even at 170 Bike PAX Break-even point at 170 bike PAX, usually within the first year 12 Agenda 1. Outline the Cycle World @ FlixBus 2. Vertical or Horizontal? 3. Economic Viability 4. One – Minute – Summary 13 One – Minute - Summary • Smart and green solutions offer great experience potential for demand site • Current megatrends lead to a growing market for combination of transportation + bicycle • 3 out 4 bike passengers travel ≤500 km • 170 bicycles break even the costs of one bike rack • FlixBus will transport 2018 for the first time more than 100.000 bikes yearly • More than 90% of all rides in D-A-CH are equipped with bike racks • Ongoing tests in Italy and Croatia • BeNeLux & Nordics first entities with >90% equipment ratio outside DACH 14 FlixBus A Smart and Green Cycling Experience for Everyone Martin Bethge, Senior Network Planning ::: [email protected] September 2018, Eurovelo and Cycle Tourism Conference Limburg BACKUP 16 BACKUP FlixBus + Bike Experience Objective Key No replacement of seats Analyze strengths Booking process Define a business case Monetarize €/km On-time-performance Identify risk stories Development of Pedelecs Old CNL lines & ADFC quality routes vs. Define a MVP gravitation approaches Iterative process of internationalization Learn, understand, improve Iterative process of improvement 17 BACKUP Heymann model Source: Own photos 18 BACKUP Thule model G6-929 incl. adapter for commercial vehicles Source: Own photos and Amazon.de 19 BACKUP Test groups lead to steady organizational structurePlan Execute Close Reason Why Project Goal Deliverables • Services beside core product • Customer Happiness • Long-term vision for a feature are a part and necessity in • Profitability product modern transportation • Identify impact of bikes on • Cyclists are a group of different line clusters and potential customers types • There is a passenger • Defined equipment levels in ticket attached to every all entities bike • Tourism sector grows as passenger group 20 BACKUP Future improvements for linking bus &user experience chain Improve infrastructure Digitalization transportation & tourism market Eco-friendly engines and regulations European network without borders 21 BACKUP User experience is a chain with a lot of links Quelle: kcw consulting Long distance buses are a part of intermodal transport chains. 22.
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