Neil Williams wrote:
wrote:

The GLA Act says that TfL's duty is to "provide or procure" bus
services.

So, why don't they just take the whole lot in house? Surely that
would be cheaper, even if some new depots did have to be built, as
it'd remove the profit layer.

Well no, it wouldn't. Private enterprise is (in general, with many
exceptions) faster to innovate. By giving them the opportunity to run
London bus routes under contract, TfL can benefit from their innovation.

However this does not mean that TfL wouldn't be better off running more
of the services themselves - it's just that you shouldn't just assume
that they would.

Another point to keep in mind is that not all the winning bidders do
have a profit layer - non profit organizations are also eligible.