More London bus contracts could be given to small operators despite 8 routes being left in limbo
Smaller companies could end up in charge of more London buses despite what Sadiq Khan has described as their 'downsides'. It comes after Sullivan Buses suddenly withdrew from operating its eight routes in August, leaving their futures uncertain.
The firm said in a statement that, following a meeting with TfL, it had 'reluctantly decided to withdraw' from its contracts. These were for the 217, 298, 299, 327, 389, 399, 549 and W9. Officials scrambled to get other operators to take them over.
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Sullivan added: "Pressures on TfL's funding have clearly had a direct impact on our decision. Unfortunately, the remuneration for providing TfL's services has not kept pace with the increasing costs of service delivery. In addition, financial penalties as a result of an increase in traffic congestion post-Covid have further impacted the viability of our TfL contracts."
Now, the Mayor of London has suggested that he may look to make things easier for smaller operators in London. Labour London Assembly Member Elly Baker told Mr Khan last week that she understands there are 'specific circumstances' as regards Sullivan pulling out, and she does not want to make 'too many assumptions'.
Smaller bus firms 'face more risk'
But, she added: "It does seem to be that the risks to smaller, including not-for-profit or mutual, bus operators are more in the market in London buses than perhaps we'd like. Just by the fact that very few of them operate.
"Our bus network is dominated by very large transportation companies. I'm wondering whether you think that's ideal, whether you'd like to see some different, and whether there's anything that TfL could do to help smaller operators run certain services."
Mr Khan said: "What's happened is the bigger companies are better placed to get the franchises, which means the smaller companies haven't got a chance. Particularly because the expertise required to bid for a contract, then run it and so forth."
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He added that TfL is trying to be 'innovative'. But, the mayor noted that there were 'downsides' to awarding operation contracts to smaller firms, however, AM Baker had 'made him think' about the 'responsibility' TfL has to 'think about small companies'.
Mr Khan added: "If it's not happening, I think we should be being proactive about this."
He also said he would consider if extra help should be given to smaller firms due to the 'bureaucracy' involved in the bidding process for contracts.
During the mayoral election campaign in the spring, the Mayor said that he wanted to bring London's buses under public operation. This would involve TfL taking over contracts when those with private firms expire.
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