Economy

Economic Commentary

Economic Calendar

Global Economies

Global Economic Calendar

Greyhound Canada Ceases Operations

It’s the end of an era as Greyhound Canada is permanently shutting down all of its bus routes across the country and ceasing operations.

The bus company ended its remaining routes in Ontario and Quebec on Thursday (May 13). Greyhound Canada had been in operation for nearly a century.

The company’s American affiliate, Greyhound Lines, Inc., will continue to operate cross-border routes to Toronto, Montreal and Vancouver once the border reopens.

The decision to shutdown all operations comes a year after Greyhound Canada temporarily suspended all service due to a sharp decline in passengers and mounting travel restrictions amid the pandemic. The bus carrier has struggled for years with declining ridership, increasing competition and deregulation.

But the complete loss of farebox revenue during the pandemic has forced the company to permanently cease operations. The decision is a blow to rural and remote areas that rely on private intercity bus companies for transportation.

Greyhound Canada had long been part of a network linking smaller communities and big cities, offering an affordable and convenient mode of travel. The rise of car ownership, ride sharing, discount airlines and urban migration has eroded bus ridership.

Citing declining ridership, deregulation and subsidized competition, Greyhound Canada had already suspended all operations in Western Canada in 2018. Yet despite the ongoing challenges with its remaining routes, nothing could have prepared the company for the dramatic 95% drop in passengers at the outset of the pandemic.

About 260 employees were laid off after Greyhound Canada temporarily ended its passenger service in May 2020. An additional 45 employees will be laid off because of the permanent closure, the company said.