Stagecoach Scoop up Rival

[Tom B]

So the roadworks were just an excuse to suspend the service completely. Next time it will be a slight drizzle that will "make it necessary to suspend the service".

Of course they can now do what they like thanks to their current monopoly position. The competition on this route had been killed the pervious year.

The idea of using extra buses to serve events such as races is an excellent idea - it used to happen here. Then First took over.

 

[DLA365]

Of course they can now do what they like thanks to their current monopoly position. The competition on this route had been killed the pervious year.

The idea of using extra buses to serve events such as races is an excellent idea - it used to happen here. Then First took over.

What would happen if a new entrant took a slice of the market by offering cheaper fares?

Oh, let me guess - First will come out with a 10p flat fare, drive the competition out and force the single up to £3.50 to recover their 'losses'.

 

[Lewisham2221]

What would happen if a new entrant took a slice of the market by offering cheaper fares?

Oh, let me guess - First will come out with a 10p flat fare, drive the competition out and force the single up to £3.50 to recover their 'losses'.

Whilst I detect a slight little hint of sarcasm there, you probably aren't far off what they would do! They would more than likely go with one of three possible options:

1) Reduce fares until the other service was no longer a viable competitor, and then increase fares (although not as extreme as your example )

2) Offer something else that the other operator didn't offer - i.e. massive frequency increase, brand new dedicated buses etc. and then remove these features once the competition was no longer viable.

3) If the competitor was significantly more popular than them, they would consider withdrawing from the route completely.

That's from my experiences anyway.

 

[DLA365]

Whilst I detect a slight little hint of sarcasm there, you probably aren't far off what they would do! They would more than likely go with one of three possible options:

Well, there was a touch of resentment but I was putting myself in the MD of First's position when planning what to do. Deregulation was supposed to be bringing about competition, but it seems to favour monopolies even more.

1) Reduce fares until the other service was no longer a viable competitor, and then increase fares (although not as extreme as your example )

That example was used to make sure that the competition was driven out. You can't take too many chances, can you? After all, the competition might get too much time to think of new strategies themselves!

3) If the competitor was significantly more popular than them, they would consider withdrawing from the route completely.

That's from my experiences anyway.

The only way a competitor can be significantly more popular is if that new operator has as many resources/ market share. Unless there is a strong resentment of the original operator, or if the competitor is another big player like Arriva, chances of First withdrawing completely are slim.

It's more likely First will withdraw the route if profitability is low!

 

[Tom B]

What would happen if a new entrant took a slice of the market by offering cheaper fares?

Oh, let me guess - First will come out with a 10p flat fare, drive the competition out and force the single up to £3.50 to recover their 'losses'.

That is similar to what happened. 2004 they REDUCED fares and put loads of promotional stuff out ("New buses on the Cantley route" - hah. you call a 6 year old spud new?). Combined with the differing attitudes after an independant was taken over, it killed a competing local bus service. The SYPTE refused to fund it even though it served many areas with elderly people who can't walk to the nearest stop for the other route. Then valient knight First sailed in and offered, kind of them, to run the route (not really, they just use daytime spare school vehicles from profitable contracts - drivers wage and bus maintainance already paid). At which point the spineless PTE handed them a large wodge of cash, a pat on the back, and let them get on running the competitors service (at lower frequency, of course - just getting the people from the sections of route away from other First routes).

 

[DLA365]

That is similar to what happened. 2004 they REDUCED fares and put loads of promotional stuff out ("New buses on the Cantley route" - hah. you call a 6 year old spud new?). Combined with the differing attitudes after an independant was taken over, it killed a competing local bus service. The SYPTE refused to fund it even though it served many areas with elderly people who can't walk to the nearest stop for the other route. Then valient knight First sailed in and offered, kind of them, to run the route (not really, they just use daytime spare school vehicles from profitable contracts - drivers wage and bus maintainance already paid). At which point the spineless PTE handed them a large wodge of cash, a pat on the back, and let them get on running the competitors service (at lower frequency, of course - just getting the people from the sections of route away from other First routes).

You mention that the SYPTE refused to fund it. As you said, First grabbed that opportunity to make money out of already idle buses and the PTE gained by giving them a smaller amount of money. No wonder the buses used are complete rubbish.

So it was a win-win situation for First and the PTE. The people who suffer of course are the passengers from lower frequency, unreliable buses, tight running times and inflating fares.

It is about time a nationwide legislation was made that all public transport fares must not rise above the rate of inflation. They should look at Hong Kong as an example - no fare increases for 9 years!

 

[Tom B]

Precisely... I have no idea why it wasn't funded when the independent said early in the year that it wasn't making money. They got loads of bad press but the PTE was to blame! The service as is is extremely limited - couple of early departures with a bus ex-schools (KLF usually (!) - as an aside why put the newest buses on a school route {though our bus is the newest school bus - V reg! I have no idea why they allocate it to our route when they put VRs and ollys on service routes!}) Then intermittant departures again depending on where buses are free during the day. Previously there was a 30min frequency all day!

 

[DLA365]

{though our bus is the newest school bus - V reg! I have no idea why they allocate it to our route when they put VRs and ollys on service routes!}) Then intermittant departures again depending on where buses are free during the day. Previously there was a 30min frequency all day!

Intermittent departures - looks like your route has been downgraded from a bus service to simply garage runs/ special journeys

As for why they put Ollys and VR's on service routes compared to V-reg Darts on school routes, it is probably because the Ollys and VR's are reliable and still going strong, but First is afraid that their "new buses" would break down after one round trip

For once, First has made the right decision as far as allocating the vehicles!

 

[David]

Still nothing has happened since the take over.

We still have to put up with the likes of these buses in Scunthorpe.

 

[Tom B]

Our bus isn't actually operated by First, thank god... I don't think it would be profitable enough for them. We get an independent!

I've seen a couple of Stagecoach liveried vehicles on LRCC routes, but they#re nowhere near first group "paint everything pink" strategy. LRCC have also started putting Darts on decker school routes, which isn't popular with the 80 people wanting to travel...