But part of the problem is the bureaucracy associated with pre-qualifying and tendering for franchises. I think many people on this forum would be amazed by the vast number of policies and procedures required just to be be allowed to bid - very few of them anything to do with running a bus service. Big groups will have specialist bid teams, and back-office experts in many fields. Thry will also be dealing with similar requirements across several authorities so can spread the cost. Jo Bloggs coaches has none of this - thry could of course use consultant(s) but that is a very expensive exercise with no guarantee of winning.
Okay, I am going to play devils advocate here, but maybe it's actually a good thing that many smaller companies aren't involved in franchising.
Twenty years ago I lived in South West London. Several of the TfL bus routes where I lived were run by a company called Mitcham Belle.
And crikes, the state of those buses. It was regular to find a written sign in the window saying the ticket machine didn't work. Or the disabled ramp didn't work. Or, even, and this is no joke, doors didn't work.
Whole outfit was a shambles. The state of the vehicles was appalling. Reliability was appalling. They couldn't do what they needed to do. There was rejoicing lovely when Mitcham Belle sold up to a company called Centra. Who failed to solve any of the problems and gave up but the long and short of it was those buses were a mess.
When Sullivens gave up their TfL contracts recently, everything I read about them reminded me of Mitcham Belle.
This is not to say all small operators are bad. Far from it. But smaller companies are often not in position to invest, to provide quality services. The quality TfL, TfGM etal, want. The quality they need to bring people back to the buses. Before they went under, Little Gem's fleet was pretty old and tired looking. D&G are doing TfGM contracts right now with some pretty ancient buses (some of which are ex Go Goodwins from before they sold to Diamond the first time!). Stotts fleet seems fine but they've have had serious staffing issues not long ago.
How would Little Gem have coped with winning a Bee Network franchise? Where would the investment have come from to make the services a better quality?
Maybe this is actually the trade off. That if we are to improve the standard of public transport in our big cities to get people out of their cars, maybe you need big operators with the money and the ability to provide those higher standards.
Because ultimately it doesn't matter what company runs the services. That's pretty irrelevant to the passenger. What matters is that the public get a good service. A great service.
We can wring our hands and say how terrible it is that Stotts will be shutting down. That Little Gem has gone. But meh, as a passenger, what I want is my bus on time and for it not to look like it's about to fall apart at the drop of a hat