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