Transit Industry Private Employers Roundup
Corporate profits continue to break records even as working people struggle to maintain their standard of living across North America. ATU members have seen up close and personal the devastating effects private companies can have when they take over public services. To maximize their profit, private companies compete for contracts to manage public transit systems regardless of their experience or track record in providing high-quality service.
As companies like Transdev or MV Transportation bid against each other for the same work, they have created a race to the bottom to provide the cheapest service possible even if that results in cutting worker pay and benefits. These names may be familiar to ATU members who have seen the same contractors come and go and are familiar with the uncertainty and chaos of contractor changes. These fluctuations across the private sector have led some companies to consolidate or merge to increase their market share ultimately creating further chaos and confusion for workers and riders.
ATU members are closely monitoring the activities of our private employers to ensure we are prepared to fight at the bargaining table. Here are just a few headlines from the transit industry over the past few months:
Via Transportation Grows Business by Securing Public Grants
In Boston and Phoenix alone, Via has secured millions of dollars of revenue by partnering with cities for grant applications. Grant funding provides guaranteed revenue for Via’s expensive and inefficient microtransit deployments, the majority of which use a gig work labor model with independent contractors to avoid unions. Via aggressively markets its various services – ranging from research consultant to microtransit operator – to agencies in a constant search for more public tax dollars.
Keolis Acquires Pacific Western Transportation’s Transit and Motorcoach Divisions
Keolis North America recently announced the purchase of Pacific Western from Student Transportation of America (STA), making Keolis Canada’s largest contractor of public transportation. The purchase will add approximately 550 total vehicles across 23 municipalities and 1,100 employees to Keolis’ operations.
Coach USA Files for Bankruptcy
Coach USA initiated bankruptcy filings and will liquidate its business segments. Coach, one of the largest privately owned bus companies in North America, was acquired by private equity firm Variant Equity Advisors in 2019, mostly using debt that is still on the company’s books. The Renco Group, Inc., a private holding company, intends to purchase several of Coach’s business segments, including Dillon’s Bus Service, Trentway, and Chenango Valley.
National Express Becomes WeDriveU
National Express Transit has rebranded to align its shuttle and transit work under the WeDriveU, Inc. banner. National Express’s parent company also announced to investors its plan to prepare its Durham School Services subsidiary for a sale to “accelerate debt reduction and increase flexibility for growth investment.”
EQT Invests in Flix
Private equity giant EQT recently announced a significant investment in Flix, the largest intercity bus company in North America. EQT will obtain a substantial 35% stake in Flix. Flix acquired Greyhound from FirstGroup in 2021, and EQT is the parent company of First Student. Flix, based in Germany, currently operates in 44 countries, including the United States and Canada.
French Government Considering Transdev Sale
Reports indicate that the French Government, which owns 66% of Transdev through state bank Caisse des Dépôts, might sell its shares. A reduction of the French Government’s investment could create a buying opportunity for the Rethmann Group, a private German company that owns the remaining 34% share. Transdev is the largest private transit operator in North America, having purchased First Transit in 2023.