Greyhound Buses: Should National Express be worried?

At the end of June, FirstGroup, Britain's largest bus operator, put forward a takeover bid of the National Express Group, which was struggling with debt, citing "significant industrial and commercial logic" in regards to the merger.

National Express declined saying it wished to focus on its own initiatives and time "wasn't appropriate" for a takeover, despite falling sales on its East Coast Main Line rail franchise.

They may today be regretting that decision as FirstGroup announced that it would be introducing the iconic Greyhound coaches to the UK, in a move that will provide direct competition to the likes of National Express and Megabus, which is owned by Stagecoach.

Gate-crashing their dominance of the low-cost travel market, Greyhound UK will hourly services from Victoria in Central London to the South Coast from September 14 with plans to add more destinations next year. Not just that, but fares will start at a mere £1.50.

In a statement, Sir Moir Lockhead, FirstGroup's Chief Executive said,

"For 95 years Greyhound has been an icon of American life carrying millions of people across the USA and Canada. Since FirstGroup took over Greyhound in 2007, we have hoped to bring this famous brand across the Atlantic and I am absolutely delighted to reveal the first authentic Greyhound coaches in the UK.

"Although built on a venerable and famous brand, these vehicles will offer the latest in customer service and comfort. Greyhound UK will offer unrivalled value for money with fares available on-line from £1 each way plus 50p booking fee. All vehicles will be equipped with free wi-fi, air-conditioning, up to 20% extra leg room compared with rivals and industry-leading customer service. Passengers will travel in comfort and be able to use the time spent onboard for work or leisure."

"Our services will be more attractive than rival bus and train options, but we also believe that Greyhound UK's growth will come from persuading more people to leave their cars at home and opt instead for our coaches."

Clearly, the gauntlet has been thrown down and National Express and MegaBus will have to react quickly to the new development. For years, students and the like have relied on MegaBus and National Express for cheap, affordable travel however FirstGroup is implementing a similiar scheme called BoltBus, a division aimed at younger travellers that has performed well State-side.

Whether the Greyhound Coaches will be a hit remains to be seen, but one thing is sure - National Express and MegaBus are going to have to up their game. As Sir Lockhead said, "The Greyhound has landed."

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