Business model
With buses, coaches, trains, trams, water buses, car- and bike-sharing systems, and on-demand transport solutions, DB Arriva offers a wide range of transport services. The activities of DB Arriva are divided into three lines of business: UK Bus, UK Trains and Mainland Europe.
Volume sold and volume produced are important key performance figures. In addition to revenues from fares, subsidies are an important source of income. Commercial revenue is predominantly generated via ticket sales/fares; however, we also generate revenue from private hire in many markets that complement commercial operations.
Predefined terms of transport contracts, concessions and route concessions, combined with the complex production system, result in a cost structure with a high proportion of fixed or semi-fixed costs (for example related to production but need some time to adjust to production variance, such as personnel expenses). The major drivers are personnel, maintenance and energy as well as in rail transport track access expenses. Reacting quickly to bus and train capacity changes can be a challenge in many of the markets in which DB Arriva operates.
Throughout Europe, DB Arriva works with local, regional and national authorities to bring new and improved services to customers. DB Arriva’s regional presence allows it to quickly respond to changes, especially new regulatory requirements and changing customer expectations. DB Arriva works closely with its customers to develop efficient, tailor-made and sustainable transport solutions.
Customers particularly appreciate the experience that DB Arriva has with operating various transport solutions and DB Arriva’s commitment to providing high-quality, reliable, efficient and cost-effective services.
