Joseph P. Schwieterman, a professor of public service management at DePaul University, said growth in the bus industry has accelerated -- reversing steady declines since 1960 -- as low-cost carriers such as Coach USA's Megabus and Greyhound's Boltbus take aim at the lucrative curbside service of so-called Chinatown operators.

 

Chinatown buses, which run from one city's Chinatown to another, offer an extremely popular curbside service, especially among 20-somethings looking for an inexpensive way to get wherever they are going. They also operate outside of terminals, saving companies millions in building and labor costs.

 

Megabus was launched in the U.S. in April 2006. It offers cheaper fares the longer a ticket is booked in advance, with perks comparable to BoltBus. The highest fare tops out at $27. The Chicago-based service expanded to the East Coast in May of this year, adding routes from New York to Washington D.C., Boston, Philadelphia, Baltimore, Buffalo, N.Y., Atlantic City, N.J., and Toronto. But the carrier closed its hub in Los Angeles last month citing low ridership.

 

Coach USA President and Chief Operating Officer Dale Moser said the company saw the number of day passengers on its service surge 137 percent last year. He attributed part of the jump to the U.S. launch of Megabus.

 

Overall industry growth has been concentrated on the East Coast, where carriers are vying for the thriving business in major cities including New York, Washington and Boston.

 

'There is a remarkable, cutthroat battle for market share on the East Coast like nothing we've ever seen before,' Schwieterman said.

 

American Bus Association spokesman Eron Shosteck suggested that riders are also increasingly focused on reducing their carbon footprint, looking at buses as a greener alternative to cars.