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First Student

First Student, Inc. is the largest provider of pupil transportation services in , specializing in operations that facilitate daily commutes for millions of students across the and . Headquartered in , , the company employs over 63,000 workers and maintains 545 operating locations, enabling it to deliver more than 900 million student journeys each year through a extensive fleet traversing hundreds of millions of miles. Tracing its roots through predecessor firms to over a century of service in , First Student has emphasized innovations such as —with seven million electric miles driven by 2025—and integrations like route-tracking apps adopted by over 12,000 schools. While recognized for scale and efficiency gains for school districts, including average cost savings of up to 30 percent via contracting, the firm has faced localized criticisms and legal challenges related to service delays, driver conduct, and safety oversight in select regions.

Overview

Market Position and Operations

First Student holds the position of the largest provider of school transportation services in , operating over twice the fleet size of its nearest competitor. The company maintains approximately 1,350 contracts, typically spanning 3-5 years, across more than 500 locations in the United States and . In the 2024-2025 school year, it completed 1 billion student transportation trips, transporting 5.5 million students daily while covering over 525 million miles. The company's operations encompass a fleet of 46,000 vehicles, the largest in the , supporting services for around 20,000 in 44 U.S. states and 8 Canadian provinces. These include full-service routing, alternative transportation options, special needs accommodations, and supplementary charter bus and van rentals. With over 63,000 employees, First Student manages 545 operating locations, emphasizing reliable daily student journeys that exceed the combined passenger volume of all U.S. airlines. As the market leader, First Student influences industry standards through its scale, serving districts of varying sizes with integrated and for route optimization and . Its dominance stems from extensive contract holdings and , enabling broad coverage despite fragmented local markets where public districts often self-operate smaller fleets.

Ownership and Leadership

First Student is owned by EQT Infrastructure, a division of the EQT Group, following its acquisition from plc. The agreement to sell First Student and its affiliate First Transit was announced on , 2021, with an enterprise value of $4.6 billion, and the transaction closed on July 22, 2021. As of 2025, First Student remains part of EQT's portfolio, focused on infrastructure investments in . The company's leadership is led by John Kenning, who assumed the roles of and in March 2022 after joining in February 2022. Kenning brings prior experience managing large-scale fleet operations and distributed workforces, emphasizing in transportation safety and efficiency. Key executives supporting operations include Dean Suhre as , responsible for day-to-day service delivery across ; Joseph Schwaderer as , overseeing financial strategy and reporting; and Darrel Harris in a senior safety-focused role. This team reports to EQT oversight while directing First Student's expansion in solutions.

History

Formation and Early Acquisitions

First Student was established in 1999 when plc, a British transport company, acquired the school bus operations of Public Transportation Services for $940 million, rebranding the division as First Student to focus on student transportation services across . This acquisition positioned as the second-largest operator of yellow es in the region, with First Student inheriting 's established network of contracts and fleet. Concurrently, purchased Bruce Transportation, further bolstering the nascent entity's operational footprint in key markets. In the years following formation, First Student pursued targeted expansions to consolidate its presence. By 2003, FirstGroup acquired the transit division of , integrating its student transportation assets in states such as , , and , which enhanced route coverage and service diversification. These moves emphasized through regional consolidation rather than broad overhauls, aligning with First Student's emphasis on reliable, contract-based services. A pivotal early acquisition occurred in , when purchased International for approximately $3.4 billion, merging Laidlaw's extensive education services into First Student and catapulting the company to the largest school bus operator in with a fleet exceeding 60,000 vehicles. The deal, completed after regulatory approvals including antitrust divestitures, integrated Laidlaw's operations across the U.S. and , significantly increasing First Student's market share and employee base to over 60,000 staff. This expansion underscored a strategy of scale through high-value mergers in a fragmented .

Major Expansions and Restructuring

In 2007, acquired International, Inc., for approximately $3.6 billion plus assumed debt, integrating as its core North American school bus division and establishing as the largest operator of yellow school buses on the continent. This transaction consolidated 's extensive student transportation network, which included operations across multiple U.S. states and Canadian provinces, enabling scaled efficiencies in fleet management and route optimization. Post-acquisition, pursued targeted expansions, such as integrating former Public Transportation Services assets acquired by in 1999, which bolstered its public and school transit capabilities. Under FirstGroup ownership, First Student undertook several bolt-on acquisitions to deepen market penetration, including the 2021 purchase of Mid States School Bus, Inc., a Nebraska-based provider serving school districts and charter services, enhancing Midwest operations with additional routes and facilities. In 2022, it acquired Apple Bus Company, expanding special education and general student transport in the Midwest, followed by Total Transportation Corp., which added specialized services in New York and strengthened urban market presence. These moves increased First Student's fleet and geographic footprint, supporting over 1,000 school district contracts by the mid-2020s. A pivotal occurred in 2021 when divested First Student and its sister company to EQT Infrastructure for an undisclosed sum, closing the deal on July 22 to refocus on UK-centric operations amid post-pandemic recovery pressures. This infusion facilitated operational streamlining, including facility optimizations like the 2025 sale-leaseback of the , Colfax Street depot, which preserved service continuity while reducing capital expenditures. By late 2025, EQT explored further strategic options, including a potential U.S. for First Student, signaling ongoing adaptation to market dynamics in .

Recent Strategic Developments

In February 2025, First Student launched , a proprietary technology platform integrating routing, navigation, hiring, training, safety monitoring, and operational analytics to enhance school bus efficiency and security across its network. The platform, deployable on driver tablets and vehicle systems, has been recognized as a TIME Best Invention of 2025 for its scalable impact on U.S. and Canadian operations, and as Fast Company's "Next Big Thing in Tech" for fostering connected transportation ecosystems. For the 2025-26 school year, First Student expanded to cover all serviced buses and districts, equipping over 40,000 driver tablets and integrating it with broader safety enhancements to support an anticipated increase in ridership exceeding one billion trips annually. In September 2025, the company partnered with Samsara to incorporate AI-driven dash cams, , and into its fleet, aiming to standardize safety protocols and performance metrics amid rising demand for reliable . Earlier, in October 2024, First Student introduced First Services, a behavior intervention program that reduced disruptive incidents by 27% year-over-year through targeted training and support, and , an EV infrastructure service to accelerate charging station deployments for electrified fleets. These initiatives align with ongoing collaborations, such as with for building EV charging infrastructure to support fleet electrification goals. In August 2025, First Student earned a spot on the Inc. 5000 list, reflecting compounded revenue growth driven by these operational expansions and market leadership in student transportation.

Core Operations

Fleet and Infrastructure

First Student operates the largest fleet of school buses in North America, consisting of more than 46,000 vehicles as of August 2025. This fleet primarily comprises diesel-powered Type C and Type D school buses, with a growing integration of electric models such as Lion Electric's Type C buses equipped with 132 kWh battery packs offering 80-90 mile ranges. The company has deployed over 350 electric school buses across North America by mid-2025, supporting its goal to convert 30,000 diesel vehicles to electric by 2035. To maintain fleet reliability, First Student employs comprehensive maintenance solutions tailored to needs, including preventive servicing, diagnostics, and rapid repair capabilities. These efforts encompass investments in vehicle refurbishments, onboard technology upgrades, and facility enhancements to keep the average fleet age low and operational efficiency high. The infrastructure supports daily operations covering more than 525 million miles annually across 44 U.S. states and 8 Canadian provinces. For integration, First Student has developed supporting infrastructure, including charging stations and smart charging systems to facilitate scalable deployment and minimize downtime. This includes processes for site assessments, grid coordination, and depot modifications to accommodate battery electric buses, ensuring compatibility with existing operations while advancing sustainability targets.

Safety Protocols and Features

First Student implements comprehensive safety protocols centered on driver training, risk mitigation, and technological enhancements to minimize incidents during student transportation. Driver training programs emphasize safety compliance, with entry-level training adhering to MAP21 regulations and FMCSA certifications, incorporating personalized feedback, skills testing, and practical application in training vehicles. Comprehensive school bus driver training spans 45.5 hours, blending classroom instruction with on-the-job experience across 12 specialized modules focused on defensive driving, student management, and emergency response. Specialized training for special needs transportation, developed by behavioral science experts, includes modules on communication strategies, behavior intervention, and individualized support protocols. Risk assessment protocols form a core component, including and railroad evaluations, evacuation drills, child search procedures, and mirror station checks to address blind spots. Drivers adhere to the Smith System of Advanced Driving, which promotes systematic hazard identification and collision avoidance through aim high, get the big picture, keep eyes moving, leave yourself an out, and make sure others see you principles. Vehicle maintenance protocols mandate pre- and post-trip inspections, often facilitated by tablet-based systems via partnerships like Samsara, alongside a strict no-idling policy to enhance operational safety and reduce environmental risks. School buses feature structural safeguards such as well-anchored, high-backed seats with heavy padding to absorb impact forces, while smaller vehicles for or students incorporate car seats or custom restraint systems. Standard equipment includes extended stop arms, flashing warning lights for loading/unloading zones, and the Child Check-Mate System®, an electronic alert to prevent oversight of or children post-trip. Technological integrations provide high-definition GPS for real-time speed and location monitoring, integrated into the ™ platform for proactive route management and incident prevention. The First Serves™ program employs data-driven , reporting a 27% reduction in student incidents among participating districts in the prior year. Driver selection enforces rigorous standards, including background checks, drug and alcohol screenings, physical exams, and over 50 hours of initial training. First Student reports internal metrics indicating performance twice the industry average for , with fiscal year 2011-2012 marking over 250,000 miles between preventable collisions; recent claims position it as holding the industry's best record, though these figures derive from company data. DriverScore analytics further support ongoing coaching, leveraging to identify and rectify risky behaviors.

Technological and Sustainability Initiatives

Electric Vehicle Integration

First Student has positioned itself as a leader in electrifying fleets, operating the largest electric fleet in with 390 vehicles deployed across the as of November 2024, alongside 2,000 more under contract. The company aims to deploy 30,000 electric buses by 2035, representing a significant portion of its overall fleet exceeding 45,000 vehicles. By April 2025, its electric buses had accumulated over 6 million miles driven, surpassing other providers in operational experience. To support scaling, First Student has developed proprietary infrastructure solutions, including First Charge, a trenchless charging system designed to simplify for depots without extensive excavation. In March 2025, the company partnered with Ampcontrol to deploy AI-optimized charging automation across its network, enhancing energy management and grid integration for the targeted 30,000-bus expansion. Collaborations with firms like have facilitated the construction of charging stations tailored for school transportation hubs. Deployments emphasize regional partnerships with school districts to replace diesel buses. In Brooklyn, New York, a October 2024 agreement with Con Edison funded 12 electric buses via a $9 million , incorporating (V2E) technology with solar panels on buses and depots for bidirectional energy flow. Similar initiatives include 23 buses for Galesburg CUSD #205 in (November 2024), 15 for Westville School District, 14 for Tacoma Public Schools (March 2025), and 16 for (March 2025). In , First Student enabled Springs R-2 Schools to transition all regular routes to electric vehicles by 2025. These efforts prioritize districts with supportive policies and , though challenges like upfront costs and charging capacity remain addressed through vendor-agnostic strategies.

AI and Data-Driven Enhancements

In February 2025, First Student introduced , a comprehensive technology platform designed to integrate , , and data analytics for improving safety, visibility, and operational efficiency in transportation. The platform aggregates real-time data from vehicle sensors, cameras, and GPS systems to deliver actionable insights to school districts, parents, and drivers, including precise estimated times of arrival (ETAs) enhanced by AI predictions and alerts to preempt mechanical failures. was recognized in Time magazine's Best Inventions of 2025 for its AI-powered hazard avoidance and analytics capabilities. A key enhancement came in September 2025, when First Student announced the integration of Samsara's technology suite across its fleet of approximately 46,000 vehicles, building on successful pilots to standardize video-based telematics, commercial , door , and student ridership tracking. This partnership equips buses with dash cameras that monitor both interior and exterior environments, issuing alerts for risks such as harsh braking, deviations, or proximity, while providing drivers with immediate and scores to foster safer habits. Data from these systems supports driver coaching programs, where telematics-derived metrics identify patterns in driving events, contributing to reported reductions of 28% in accidents and 27% in behavioral incidents fleet-wide. For alternative transportation services, such as vans and smaller vehicles, First Student committed in July 2025 to outfitting over 50% of its fleet with AI-integrated onboard cameras to enable similar real-time incident prevention and ridership verification. These enhancements extend to parent-facing tools via the FirstView app, which leverages ™ data for near-real-time bus location tracking and multi-student monitoring, though the platform's core strength lies in backend analytics for route optimization and compliance reporting. Overall, the AI-driven features prioritize causal interventions in risk factors, such as preempting distractions or mechanical issues through data patterns, rather than reactive measures alone.

Canadian Division

Organizational Structure

First Student Canada's organizational structure is led by Francis Lalonde, who reports to the CEO and of First Student Inc., John Kenning, and oversees operations across eight Canadian provinces. This central integrates Canadian activities with the broader North American strategy, emphasizing , , and regional expansion through acquisitions. Regional executives, such as Senior Vice President Troy Phinney for , handle province-specific oversight, including and , where the division maintains significant fleet presence exceeding 900 vehicles in alone as of recent expansions. Area General Managers, like Laurie Henner, supervise clusters of operational branches, focusing on financial performance, route optimization, and within defined geographic areas. At the local level, Branch or Location Managers direct daily activities at individual depots, managing driver scheduling, vehicle maintenance, and compliance with provincial regulations, as outlined in agreements with unions like . This decentralized approach supports the division's scale, with operations spanning urban centers like and to rural routes, enabling responsive service amid varying provincial demands. The structure, formalized under First Canada ULC, prioritizes while escalating strategic decisions to U.S.-based executives for and sustainability goals.

Key Incidents and Regional Challenges

In September 2025, First Student Canada's operations in , encountered a major labor dispute with Local 195, representing 140 drivers responsible for transporting up to 7,000 students daily. Drivers voted 98 percent in favor of a strike mandate on August 20, citing issues with wages, work-life balance, and compensation reflecting their responsibilities. First Student responded by issuing a lockout notice on September 9, set to begin September 15 at 12:01 a.m., after claiming the union delayed negotiations despite the company's readiness to meet. A tentative three-year agreement was reached on , averting the lockout, with ratification finalized by September 14, restoring normal service and addressing key union demands. Earlier in 2025, similar tensions arose in other regions, including a potential strike notice from First Student Bus Lines in in April, linked to contract negotiations with Student Transportation Services of . representatives highlighted persistent challenges such as driver shortages contributing to cancelled routes, described as a "growing problem" exacerbating service reliability in areas with high demand. These incidents reflect broader regional pressures in Canada's densely populated provinces like , where under provincial labor laws frequently intersects with seasonal school transportation needs, amplifying risks of disruptions during early academic terms. Safety-related challenges in Canada include compliance with province-specific regulations, such as Alberta's stringent vehicle inspection standards amid variable weather conditions, though major verified incidents involving First Student remain infrequent in recent years. Historical context includes a March 7, 2018, collision in Alberta where a First Student-operated bus carrying 14 students struck a semi-truck, resulting in one student fatality; investigations attributed it to road conditions and driver actions, prompting localized reviews of routing protocols. Ongoing regional hurdles encompass recruitment amid labor market tightness and adaptation to bilingual service requirements in Quebec, contributing to operational strains without resolved systemic reforms.

Controversies and Criticisms

Service Reliability and Performance Issues

First Student has faced persistent challenges with service reliability, primarily manifested as delays in bus arrivals and departures, which have disrupted student schedules and prompted complaints from parents and school districts. These issues often stem from chronic driver shortages, with the company reporting shortages of up to 25 drivers in districts like , in October 2023, leading to consolidated routes and extended travel times. In Waterloo, Iowa, as of October 2023, First Student operated with only 50 drivers for 55 routes, contributing to widespread delays and necessitating operational adjustments. Performance problems escalated in the 2024-2025 school year, with reports of students waiting up to two hours for buses in districts, attributed directly to insufficient staffing. In , September 2025 saw hours-long delays and instances of incorrect drop-offs, prompting the school district to issue a formal notice of concern to First Student and demand an immediate corrective action plan with daily monitoring. Such disruptions have fueled broader dissatisfaction, including low customer ratings on platforms like (average 2.0 out of 5 from 78 reviews) and multiple complaints related to unreliable service. In the , First Student's declining performance through 2024 included frequent delays, poor communication with districts and families, and inadequate response to service gaps, resulting in the loss of contracts with several school districts frustrated by unmet reliability standards. Earlier incidents, such as those in ' Unit 5 district in September 2019, highlighted recurring patterns of late buses and communication breakdowns tied to staffing shortfalls, leading school boards to explore alternative providers. While First Student has implemented plans like driver recruitment drives and route optimizations to mitigate these issues, industry-wide driver shortages exacerbate the challenges, affecting on-time performance across multiple regions.

Labor and Employee Disputes

First Student has faced recurrent labor disputes with unionized employees, primarily school bus drivers, involving allegations of unfair labor practices, wage issues, inadequate benefits, and poor working conditions, often resulting in strikes, grievances, and (NLRB) proceedings. Unions such as Teamsters, Amalgamated Transit Union (ATU), and Service Employees International Union (SEIU) have led negotiations and actions, citing failures in contract fulfillment and retaliation against workers. The company has consistently maintained engagement in good-faith bargaining while disputing many claims. In Seattle, Washington, Teamsters Local 174 organized a one-day unfair labor practice strike on December 13, 2017, involving over 400 drivers protesting stalled contract talks on wages and benefits; the action highlighted broader tensions leading to subsequent disruptions. A larger strike ensued in early 2018, impacting 12,000 students amid demands for improved pay, health coverage, and retirement plans, with negotiations halting temporarily. Similar patterns emerged elsewhere, including a 2017 four-hour strike in Steilacoom, Washington, by Teamsters Local 313 over low hourly wages of $12.75, resolved via a $5-per-hour average raise agreement, and a two-week Teamsters Local 572 strike in Southern California districts (Alhambra, Glendale, Pasadena) in 2018 seeking better compensation and conditions for 3,000 students. More recent conflicts include ATU Local 1212's strike by nearly 40 drivers and monitors in Dalton, Georgia, in early 2023, which ended with ratification of a stronger collective bargaining agreement addressing wages and terms. In Fresno, California, SEIU members handling special-needs routes accused First Student in December 2024 of wage theft—requiring clock-out for paperwork and cleaning, owing workers hundreds to thousands of dollars—and overlooking sexual harassment complaints, prompting grievances, an EEOC filing, and a potential police report; the company responded by emphasizing serious handling of issues and ongoing contract discussions under a 2021-2026 extension. In October 2025, the union for Zachary, Louisiana, drivers threatened a strike, alleging unpaid wages covered improperly with personal days and ignored complaints. An ongoing dispute in Howard County, Maryland, as of October 2025, has disrupted services for public school students. The NLRB has adjudicated multiple unfair labor practice charges against First Student, including cases from regions like the Northeast and Midwest, though specific outcomes vary and often involve settlements or dismissals. Earlier instances, such as Teamsters Local 633's 2016 strike threat in New Hampshire over contract disputes affecting 850 employees and a 2009 filing of charges for multiple violations, underscore persistent tensions in employee relations.

Legal and Regulatory Violations

In Washington state, the Utilities and Transportation Commission (UTC) fined First Student $23,700 in March 2019 for 44 violations of vehicle and driver safety requirements, including inadequate maintenance records and failure to conduct required inspections. In February 2022, the UTC filed a complaint citing over 600 safety and procedural violations by First Student across its charter operations from 2019 to 2021, such as improper driver qualifications, deficient vehicle inspections, and record-keeping failures; the company admitted to 396 violations and settled for a $188,000 penalty, with $68,000 paid immediately and the remainder suspended contingent on compliance. The U.S. Environmental Protection Agency (EPA) has pursued multiple enforcement actions against First Student for Clean Air Act violations related to excessive diesel bus idling. In October 2009, the company agreed to a nationwide anti-idling program, a $128,000 , and over $1 million in projects to address idling at facilities. In November 2010, authorities imposed a $40,000 penalty for idling violations uncovered during inspections in that state. Further, in March 2024, First Student settled EPA allegations of prolonged idling at two Connecticut depots by paying $96,223 and committing to compliance measures like driver training and idling reduction technologies. Under the Clean Water Act, the Waste Action Project filed suit in June 2023 against First Student and affiliate Strata Integrated Services for unauthorized stormwater discharges exceeding permit limits at a Tacoma, Washington facility, including turbidity and total suspended solids violations under the state's Industrial Stormwater General Permit. The parties entered a consent decree in 2023, requiring enhanced stormwater controls, monitoring, and reporting, though specific penalty amounts were not publicly detailed in court filings. First Student has faced U.S. Department of Labor Wage and Hour Division scrutiny, paying $11,448 in 2012 for Fair Labor Standards Act violations involving unpaid overtime and shortfalls for bus drivers. Multiple class-action lawsuits have alleged systemic failures in compensating pre- and post-shift work, rest breaks, and accurate wage statements, with a proposed $3.5 million settlement for over 8,000 employees in pending court approval as of 2025. Additionally, in , the company settled an suit for $150,000 over and retaliation claims, including injunctive relief for policy improvements.

Achievements and Industry Impact

Safety Record and Awards

First Student reports a safety record that exceeds industry averages, with company data indicating its operations are twice as safe as the typical service based on incident rates per mile driven. The firm attributes this to comprehensive driver training, including preparation for adverse conditions, and technology integrations such as AI-powered via the DriverScore platform, which analyzes driving behaviors to reduce risks. The company's First Serves program, focused on behavioral management, achieved a 27% year-over-year reduction in disruptive incidents on buses as of 2025, supported by real-time monitoring from advanced camera systems and partnerships like Samsara's platform for incident detection. First Student also emphasizes vehicle safety features, including reinforced structures and emergency protocols, contributing to its self-described position as holding the industry's strongest overall safety performance. In recognition of these efforts, First Student received the National Safety Council's Green Cross for Safety and Occupational Excellence Award, making it the only school bus provider to earn this distinction for superior management and occupational practices. The company has also been accepted into the Campbell Institute for leadership, an affiliation reserved for organizations demonstrating evidence-based cultures. Additional honors include the National School Transportation Association's (NSTA) 2025 Go Yellow, Go Green Award for advancing zero-emission buses, which the company links to enhanced safety through reduced emissions and quieter operations. Individual employees have been awarded, such as Senior Vice President David Whipple receiving the National Safety Council's in 2019 for contributions to safety and health initiatives. Internal accolades, like the Operations Team Safety Achievement Award granted to high-performing terminals, further highlight location-specific safety excellence.

Market Innovations and Efficiency Gains

First Student has implemented the HALO technology platform, launched in February 2025, which integrates AI-powered cameras, routing optimization, vehicle tracking, navigation, and payroll systems to streamline school transportation operations across its fleet of approximately 46,000 vehicles. This platform enhances efficiency by providing for route planning and driver performance, reducing operational redundancies and improving on-time performance for student pickups and drop-offs. By unifying disparate systems, minimizes manual interventions, enabling districts to achieve cost savings through and optimized . In partnership with Samsara, First Student deployed vehicle and AI-driven tools in September 2025, including school bus-specific routing algorithms that enhance accuracy and reduce idle times, alongside driver performance dashboards offering real-time feedback to curb inefficient behaviors such as excessive idling or rapid acceleration. These integrations have contributed to measurable efficiency gains, with the company reporting decreased rapid acceleration incidents and improved fuel management across its operations. Earlier initiatives like the DriveSMART system have yielded approximately 5% improvements in through driver behavior monitoring and training programs. The company's push into (EV) adoption has further driven efficiency, with its fleet surpassing 5 million miles driven by February 2025 and reaching 6 million by April 2025, equivalent to over 10,000 cross-country trips. HALO's charge management system optimizes charging schedules to align with off-peak energy rates, reducing grid strain and operational costs while extending battery life. inherently offer higher compared to equivalents, with First Student securing over $500 million in federal grants to expand its EV fleet toward 5,000 vehicles, thereby lowering long-term fuel and maintenance expenses for districts. For the 2025-26 school year, HALO's expansion to all buses and districts is projected to further amplify these gains by incorporating vehicle-to-vehicle communication for dynamic routing adjustments.

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