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Bus Transportation Services
First Research, April 2012, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US bus transportation industry includes about 7,000 companies with combined annual revenue of about $20 billion. Major bus service providers include FirstGroup America (owner of First Student, First Transit, and Greyhound), Coach USA, Metropolitan Transportation Authority (MTA), Orange County Transportation Authority, and the US operations of National Express. The urban, school, and interurban and rural bus services sectors are highly concentrated; the charter bus and special needs transportation sectors are fragmented.
COMPETITIVE LANDSCAPE
Demand depends mainly on the demographic makeup and growth of the local population. The profitability of individual companies depends on efficient operations. Large companies can have advantages in buying fuel and in maintaining fleets. Small companies can compete by providing specialized services. The industry is labor-intensive: average annual revenue per worker ranges from $50,000 to $80,000, depending on the sector.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major types of bus service include school, urban, interurban and rural, charter, and paratransit (transportation of people with disabilities).
Companies in all sectors of the industry acquire buses, hire and train drivers, and operate maintenance facilities. School and urban bus companies pick up and discharge passengers along routes and according to schedules determined by contract customers, such as school districts and municipalities. Besides buses, drivers and fuel are significant costs for bus operators. Both commercial bus drivers and school bus drivers must have a commercial driver's license (CDL). Most buses run on diesel fuel.
School bus operators buy about 40,000 new buses from...
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