Greyhound bus stops are valuable assets. Here’s who’s cashing in on them | CNN Business (2024)

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You can’t get here from there. That’s the increasing problem facing around 60 million people who depend on intercity buses.

Intercity bus lines like Greyhound, Trailways and Megabus, an overlooked but essential part of America’s transportation system, carry twice the number of people who take Amtrak every year. But the whole network faces a growing crisis: Greyhound and other private companies’ bus terminals are rapidly closing around the country.

Houston, Philadelphia, Cincinnati, Tampa, Louisville, Charlottesville, Portland, Oregon, and other downtown bus depots have shuttered in recent years. Bus terminals in major hubs like Chicago and Dallas are also set to close. Greyhound and other companies have relocated their stops far away from city centers, which are often inaccessible by public transit, switched to curbside service or eliminated routes altogether.

These stations built decades ago are shuttering because of high operating costs, government underfunding and, surprisingly, the entrance of an investment firm buying up Greyhound’s real estate for lucrative resale.

Greyhound terminal closures in one state can unravel service in others, and the closures threaten to break the comprehensive web of national bus routes. Greyhound suspended service for a year in Jackson, Mississippi, after the terminal closed and also left Little Rock, Arkansas, after a closure.

Greyhound bus stops are valuable assets. Here’s who’s cashing in on them | CNN Business (1)

A bus sits at the Greyhound station, in El Paso, Texas, in 2021. Greyhound stations are closing across the country, threatening the intercity bus system.

“All this happening at once is really startling,” said Joseph Schwieterman, a DePaul University professor who researches intercity bus travel and directs the university’s Chaddick Institute for Metropolitan Development. “You’re taking mobility away from disproportionately low-income and mobility-challenged citizens who don’t have other options.”

Roughly three-quarters of intercity bus riders have annual incomes of less than $40,000. More than a quarter would not make their trip if bus service was not available, according to surveys by Midwestern governments reviewed by DePaul University.

Intercity bus riders are also disproportionately minorities, people with disabilities, and unemployed travelers.

A spokesperson for Greyhound, which is now owned by German company FlixMobility, said it strives to offer customers the most options for connections, but has “encountered challenges in some instances.” The spokesperson also said they “actively engage with local stakeholders to emphasize the importance of supporting affordable and equitable intercity bus travel.”

Taxi cabs cross 42nd Street as the sun rises on December 8, 2022, in New York City. Gary Hershorn/Getty Images New York City will charge drivers going downtown. Other cities may be next

The terminal closures have been accelerating as Greyhound, the largest carrier, sells its valuable terminals to investors, including investment firm Alden Global Capital.

Last year, Alden subsidiary Twenty Lake Holdings purchased 33 Greyhound stations for $140 million. Alden is best known for buying up local newspapers like The Chicago Tribune, New York Daily News and The Baltimore Sun, cutting staff, and selling some of the iconic downtown buildings.

Alden has started to sell the Greyhound depots to real estate developers, speeding up the timetable for closures.

“I don’t know the specific details of each building, but it is clear what is happening here: an important piece of transit infrastructure is being sacrificed in the name of higher profits,” said Stijn Van Nieuwerburgh, a professor of real estate at Columbia Business School.

Twenty Lake Holdings did not respond to requests for comment. Attempts to reach Alden were unsuccessful.

Greyhound selling stations

The closures are the latest pressure point for intercity bus travel, which has been neglected for decades.

Local, state and the federal agencies have underinvested in intercity bus travel and relied on private companies to provide an essential public service for mostly low-income passengers. Some cities have been hostile to intercity buses and blocked efforts to relocate terminals.

Greyhound bus stops are valuable assets. Here’s who’s cashing in on them | CNN Business (3)

Outside the Greyhound Bus terminal in Portland, Maine, in 2021. The retro mural is coming down.

“The public sector has turned a cold shoulder to buses,” DePaul’s Schwieterman said. “We subsidize public transit abundantly, but we don’t see this as an extension of our transit system. Few governments view it as their mandate.”

Bus terminals are costly for companies to operate, maintain and pay property taxes on. Many have deteriorated over the years, becoming blighted properties struggling with homelessness, crime and other issues.

But terminal closures cause a ripple effect of problems.

Travelers can’t use the bathroom, stay out of the harsh weather or get something to eat while they wait. People transferring late at night or early in the morning, sometimes with long layovers, have no place to safely wait or sleep. It’s worse in the cold, rain, snow or extreme heat.

Bus carriers often try to switch to curbside service when a terminal closes, but curbside bus service can clog up city streets with passengers and their luggage, snarl traffic, increase pollution, and frustrate local business owners. In Philadelphia, a Greyhound terminal closure and switch to curbside service after its lease ended turned into a “humanitarian disaster” and “municipal disgrace” with people waiting on street corners.

In Cincinnati, the Greyhound terminal downtown closed last year after a sale and relocated to a suburban area far from public transportation.

Greyhound bus stops are valuable assets. Here’s who’s cashing in on them | CNN Business (4)

People wait outside a makeshift Greyhound bus stop in a trailer in Arlington Heights, Cincinnati, in 2023. The downtown terminal closed.

A trailer in a parking lot became the new Greyhound stop, with limited seating inside, two restrooms and no food. It’s open 12:30 a.m. to 5:30 p.m.

“It was plopped in the middle of nowhere,” said Cam Hardy, president of Better Bus Coalition, a transit advocacy group in the Cincinnati area. Hardy himself takes the Greyhound bus to Indianapolis frequently.

“It’s suffering big time. I’m really concerned,” Hardy said. “I think about my elders and people waiting in inclement weather. People need a secure, safe place to wait and clear instructions if there’s a delay.”

Rise and fall of intercity buses

Although intercity bus travel is an afterthought to many people today, it has been an important part of American transportation since the early 20th century, delivering both rich and poor families across the country.

Greyhound, which was started in Hibbing, Minnesota in 1914, became the largest intercity bus company in the United States.

Beginning in the 1930s, Greyhound built hundreds of modern bus terminals, often in the “Streamline Moderne” architectural style in the largest cities to match its streamline buses.

Greyhound bus stops are valuable assets. Here’s who’s cashing in on them | CNN Business (5)

The former Greyhound terminal in Evansville, Indiana, was built in 1938 and today is preserved as a hamburger restaurant.

In many cities, bus terminals were the only business open 24 hours a day. The terminals and intercity buses were sometimes symbols of Americana and adventure, used as scenes in numerous films ranging from Midnight Cowboy to Forest Gump.

But demand for intercity buses weakened as the interstate highway system grew, car ownership increased, air travel expanded, and city centers deteriorated. Companies cut service and closed terminals starting around the 1960s.

Cities lost nearly one-third of intercity bus service between 1960 and 1980 and more than half of the remaining service between 1980 and 2006, according to DePaul University research.

Federal deregulation of the intercity bus industry in the 1980s sped up service cuts. Deregulation allowed carriers to abandon their unprofitable routes, resulting in a wave of service reductions in smaller cities.

Ridership dropped from 140 million passengers in 1960 to 40 million by 1990.

Traditionally, buses operated from their own private terminals or from city-owned facilities. But beginning in the late 1990s, buses going from Chinatown to Chinatown in different cities along the Northeast Corridor emerged. These discount carriers avoided terminals and operated from the curb.

The success of the so-called “Chinatown bus” model led to a boom in curbside carriers, offering slightly more perks (free internet!) and newer buses with sleek branding and lower prices than Greyhound buses.

Greyhound bus stops are valuable assets. Here’s who’s cashing in on them | CNN Business (6)

Passengers line up to board Megabus buses in New York City in 2014. Curbside carries have drawn new riders but do not usually have facilities.

In 2006, Megabus debuted, followed by BoltBus a year later. Companies found that operating curbside saved money by reducing labor costs and eliminating high costs of running their own terminals.

“The industry has been increasingly leaving the terminal to operate on the curb,” said Nicholas Klein, an assistant professor in Cornell University’s department of city and regional planning who studies intercity bus travel.

While the growth of curbside carriers like Megabus has helped the intercity bus industry draw new riders, curbside carriers usually only operate in major cities and typically do not offer routes that require transfers.

“Losing out on terminals means that cities are going to have to regulate curbside service,” Klein said. “Someone has to deal with the consequences of lots of people waiting for buses where there’s not sufficient services.”

New solutions

As Greyhound terminals close, transit advocates say the public sector needs to step in to play a larger role in supporting intercity bus travel.

“Intercity buses should no longer be an invisible mode to city governments,” said Joseph Schwieterman. “The era of privately-run stations is rapidly ending, so governments need to figure out how to assure that service continues without pushing people out into the rain and cold.”

One promising model is in Atlanta, where Greyhound opened a new 14,000 square-foot dedicated terminal this year with financial support from the federal government. The station is used by other intercity bus operators and is near public transit.

Some public transit advocates note than train stations are more anchored and less movable than bus stations. And, in many cases, they can serve as dual train and bus stations. Milwaukee and Boston, for example, also have municipal intercity bus terminals located next to train stations.

Greyhound bus stops are valuable assets. Here’s who’s cashing in on them | CNN Business (7)

A passenger at a Greyhound bus terminal waits for a mechanic to fix a bus's flat tire in Harrisburg, PA, in July 2021.

“Access to publicly owned intermodal facilities is crucial for providing communities across the U.S. with intercity bus service,” the Greyhound spokesperson said. “We strongly urge local and regional governments to support intercity bus access to these centers.”

In Houston, Greyhound last month closed its centrally-located terminal and moved to a smaller stop with less access to public transit.

Gabe Cazares, the executive director of transportation advocacy group Link Houston, wants to see a publicly-owned, centralized transportation hub in Houston as a permanent replacement for the Greyhound terminal.

“As long as public sector takes a hands-off approach, we’re going to continue to see the cascading problems every time a bus operator closes,” Cazares said. “We’re going to have to come up with creative solutions to tackle this.”

Correction: A previous version of this article mischaracterized Alden Global Capital. It is an investment manager.

Greyhound bus stops are valuable assets. Here’s who’s cashing in on them | CNN Business (2024)

FAQs

What hedge fund developers buying up shutting down Greyhound bus terminals? ›

Yet terminals around the country have been shuttered and bought up by hedge funds for redevelopment — “In 2022, Twenty Lake Holdings bought 33 Greyhound stations in prime locations for only $140 million” — leaving bus riders with no access to services like shelter, ticket counters, or bathrooms and forcing passengers ...

Who owns Greyhound now? ›

The company is owned by Flix North America, Inc., an affiliate of FlixBus, and is based in Downtown Dallas. Greyhound Lines, Inc. Dallas, Texas, U.S.

Why is Greyhound selling terminals? ›

The true culprits are more a combination of factors, including "high operating costs [and] government underfunding," CNN said. As the industry shrinks, the cost of maintaining Greyhound routes increases, and this can "threaten to break the comprehensive web of national bus routes," the outlet added.

Is Greyhound still profitable? ›

BERLIN, Feb 15 (Reuters) - Greyhound-owner Flix, which operates bus and train services in over 40 countries, on Wednesday reported its most successful year yet in 2022 with revenue of 1.5 billion euros ($1.61 billion) and forecasted revenue growth of over 20% in 2023.

Who owns the biggest hedge fund? ›

In 1975, Bridgewater Associates was founded by Ray Dalio in his Manhattan apartment. Today Bridgewater is the largest hedge fund in the world and Dalio has a personal fortune of approximately $19 billion.

Who is the CEO of Greyhound bus lines? ›

“It's becoming urgent,” Kai Boysan, CEO of Greyhound and Flix North America, told the Sun-Times “We're dangerously close to a major service disruption.”

Who did Greyhound merge with? ›

Now More Options and Choices. Greyhound and FlixBus are joining forces to provide an expanded network to customers in the U.S., Mexico, and Canada, as well as more ticket flexibility and more options to make your trip more enjoyable than ever before.

What is the largest bus company in the US? ›

Founded in 1914, Greyhound Lines, Inc. is the largest provider of intercity bus transportation, serving 2,300 destinations across North America with a modern, environmentally friendly fleet.

Why did FlixBus buy Greyhound? ›

Having already been present in the North American market with its FlixBus services since 2018, the purchase of Greyhound brought together two leaders of the bus industry, combining FlixBus's innovative global technology and expertise with Greyhound's iconic legacy and nationwide network.

Is Greyhound shipping being discontinued? ›

Greyhound has discontinued their package service.

Is Greyhound back in business? ›

Greyhound will start operating from 13 April 2022, assisting millions of passengers with transportation services across Southern Africa. “We are extremely happy to be back and fully operational, as this will allow passengers the opportunity to travel safely and in luxury again.

Are Greyhound stations leaving downtowns after sale to notorious investment firm? ›

Greyhound bus stations nationwide, including in Oakland, are closing and relocating outside central business districts after being acquired by an investment firm that rose to infamy for its acquisition and gutting of American newspapers.

Who bought out Greyhound? ›

Munich-based Flix SE acquired Greyhound Lines Inc. in 2021. Having already been present in the North American market with its FlixBus brand since 2018, the purchase of Greyhound brought together two leaders of the travel industry to offer a smart and affordable way to travel.

Who is the competitor of Greyhound? ›

Greyhound bus company ➧ Megabus bus company ➧ BoltBus bus company ➧ Lux Bus America bus company ➧

How far can a Greyhound bus go on a tank of gas? ›

When we fill up, it costs us roughly $600. At roughly 8 miles per gallon, that gives us an average of 15 miles per tank. To put that into perspective, we could drive from Los Angeles, California all the way to Dallas, Texas without ever needing to fill up.

What was the biggest hedge fund crash? ›

1. Madoff Investment Scandal. Madoff admitted to his sons who worked at the firm that the asset management business was fraudulent and a big lie in 2008. 2 It is estimated the fraud was around $65 billion.

What hedge fund went out of business? ›

Melvin Capital Management LP was an American investment management firm based in New York City. It was founded in 2014 by Gabriel Plotkin, who named the firm after his late grandfather. New York City, U.S. On May 18, 2022, Plotkin announced that the fund would close and return any remaining customer funds by June 2022.

How much did FlixBus buy Greyhound for? ›

FlixMobility has acquired U.S. long-distance bus provider Greyhound for approximately $46 million. First Group, the Scotland-based owner of Greyhound, has agreed terms with FlixMobility-controlled Neptune Holding, which includes a further deferred consideration of $32 million.

Who bought Greyhound SA? ›

Greyhound, previously owned by transport company Unitrans Passenger, was put up for auction last year and purchased by an investment entity that is owned by a private trust. Greyhound Coach Lines spokesperson Leslie Matthews said the bus service was “extremely happy” to be back and fully operational.

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