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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 118789
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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I am starting a bus company in Wyoming. I have in mind a

Customer Question

I am starting a "for profit" bus company in Wyoming. I have in mind a single pickup and drop off point which may seem odd but I know there are enough people that need the service to support my venture.

Right now there is a "non profit" bus company servicing these passengers. A few months ago, on the website of the "nonprofit" company it said that they were able to offer these rides provided no "for profit" company came forward showing an interest in the business. Their own site said that they must advertise upcoming (pre-booked) trips and offer them to "for profit" companies which they never did. Now they have removed that page altogether from their website.

Also a "strange" website has recently sprung up offering tickets for this particular trip but never mentions the name of the bus company offering them. In fact it shows the logos of other bus companies that do not offer the rides. It's as though they are hiding the fact that they are selling the tickets. I've been to the pickup location and sure enough it's this nonprofit bus company.

The other "nonprofit company also run regular scheduled routes but are coming well over 100 miles out of their way to get this business. With the government grants, subsidies and tax benefits that the nonprofit receives they are able to offer unrealistic low prices that I as a for profit company can not compete with as direct competitor.

Can you tell me if this nonprofit is legally able to go into direct competition with a for-profit company because their actions seem very underhanded to me.

Submitted: 1 year ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

There is no law stating a non-profit cannot compete for business with a for profit business. In fact, it happens all the time in many areas, for example there are non-profit hospitals and for profit hospitals and they compete for business with one another. So your business can compete with the non-profit company.