This presentation by André SCHWÄMMLEIN, Founder and Global MD of Flixbus was made during the roundtable discussion on competition and innovation in land transport held during the 62nd meeting of the OECD Working Party No. 2 on Competition and Regulation on 28 November 2016. More papers and presentations on the topic can be found out at www.oecd.org/daf/competition/competition-and-innovation-in-land-transport.htm

1. Bus deregulation in Europe
November 2016

2. 1
Past
Flixbus is Bringing Bus & Mobility Services to the 21st Century
Today: FlixBus – The New Mobility Experience
Bremen
Amsterdam
The Hague
Brussels
Paris
Luxembourg
Essen
Dusseldorf
Frankfurt
Zurich
Stuttgart
Rome
Barcelona
Switzerland
Hamburg
Berlin
Hannover
Dortmund
Cologne
Nuremberg
Dresden
Prague
Vienna
Budapest
Copenhagen
Slovenia
Romania
Poland
Ukraine
Slovakia
Austria
Croatia
London

3. 2
How FlixBus Works
Customers
250+ Bus Partners
>35 Mio. Happy
customers
>5.000 drivers
>1.000 buses

4. 3
Busses compete primarily with cars and trains and are most attractive
for easy, modern and cheap travel
Busses offer a great alternative to people
with lower income, students and older people
Alternative means of transportation Major reasons to chose bus
9%
20% 18%
12% 15%
7% 10% 24%
10%
28% 17%
16%
16%
12%
12%
23%
35%
17% 26%
31%
9%
0%
20%
40%
60%
80%
100%
Germany CEE France Italy
I wouldn't have made this trip Car (own car or driven by …)
Car sharing Another bus company
Regional train Intercity rail
Airplane
87%
41%
20%
17%
15%
13%
12%
9%
8%
Attractive price
Direct connection
WiFi on board
Nearby station
Frequency
Comfort
Short travel time
Environmentally friendly
Safe

5. 4
Innovation in bus travel strengthens public transport
Deregulation created higher demand in public transport… … along with better offer on rail
• Attractive prices also offered by
state railway
• WiFi offering introduced after
example from busses
• Punctuality initiative and quality
improvement
• Network expansion announced
after decades of decrease
• Technology investments to
improve customer experience
(apps, booking, …)
100
110
120
130
140
150
160
170
180
2012 2013 2014 2015 2016 forecast
MioPassengers
Long distance rail Long distance bus

6. 5
European deregulation still with untapped potential
Deregulated Protective regulation Not accessible
Not an EU member state/
contingent accessibility
State of deregulation
• Some major countries pushed
deregulation to foster economy
• Further deregulation on hold
besides Switzerland
• Authorization processes in all
countries time consuming and
highly inefficient
• European cross-border traffic
deregulated but with most
complex authorization process

7. 6
Many regulatory challenges even in deregulated markets
Regulatory challenges destroy value
for travelers, bus companies and tax payers
Weak infrastructure in cities
• Low share of cities with proper
bus terminals
• Wrong decisions on bus terminal
location in young markets
• Infrastructure monopolies
threaten customer value
Complex application processes
• Lengthy discussions with authorities
and formalities
• Long process time destroys values
for customer and companies
• Low flexibility for changes
Intense paperwork & border control
• Huge amount of documentation in
paper needed
• Authorities on the street not
knowledgeable on regulation
• Boarder controls create huge delays
State subsidies for competitors
• State railways with aggressive
attacks on private companies
• Losses are compensated by
subsidized rail business
• State railways tries to change
regulation against bus companies

8. 7
Innovation and deregulation in bus travel creates huge positive effect
without costs for governments
Public transport in bus and rail gets more attractive against cars
Positive environmental impact from bus travel as the most efficient way to travel and
save CO2 emissions
Thousands of new permanent jobs and in many cases in economically weak regions
Millions of tax from VAT and other taxes as well as social security payments
Increased travel cross-border and higher cultural exchange across countries
Totally free for governments