Megabus Makes Money

A private bus company with an internet-based reservation system is succeeding wildly, perhaps paving the way for successful bus transit (and away from rail).

Bloomberg BusinessWeek talks with Dale Moser, CEO of Megabus' parent company, Coach USA, about the strengths of the Megabus model:

"...how 90 percent of customers book online, many simply showing tickets texted to their phones to board; how the buses all offer free Wi-Fi and power outlets at every seat; how every trip includes at least one $1 fare, with prices going up as the departure date nears and as the bus fills; how there are no terminals or storefronts, just a bare-bones back-office staff; how the bus fleet is in constant use."

The author suggests that the Megabus model is so successful that it may "help kill plans for new railroads."

Full Story: The Megabus effect

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