Intercity Bus - History of Services

History of Services

The development of the concept of intercity bus service, which began in the United States in the early 20th century, provided a new means of transport between cities in North America.

In 1913, Carl Eric Wickman, frustrated about being unable to sell a seven-passenger automobile on the showroom floor of the dealership where he worked, purchased the vehicle himself, and stated using it to transport miners between Hibbing and Alice, Minnesota, United States. He charged a fare of 15¢ per ride, and at a time when gasoline was just 4¢ a gallon, profits were high. He began providing this service regularly in what would start a new company and industry. The company would one day be known as Greyhound.

At the time when the concept began, due to the low quality of roads, breakdowns were common.

In 1914, Pennsylvania, United States was the first state to pass regulations for bus service in order to prevent monopolies of the industry from forming. All remaining U.S. states would soon follow.

Demand for intercity bus services has grown since the 1920s and 1930s, a time when both roads and vehicles improved. In 1923, five companies existed with a fleet of 100 or more vehicles. By 1925, this number increased to 21.

The 1930s to the 1950s saw the growth of the bus stations used for intercity transport. During this time, many were expanded from the simple stops they once were into major business centers that included shopping and other architectural centers.

From the 1950s to the 1960s, with the development of the National Highway System, intercity bus transport increased in speed and efficiency. However, as the popularity of the private automobile has increased, the use of intercity bus service has declined. In Canada, in the 1950s, 120 million passengers boarded intercity bus service each year. In the 1960s, this number declined to 50 million. During the 1990s, it was down to 10 million.

In 1982, the intercity bus industry in the United States was deregulated. United Kingdom also deregulated service during the 1980s.