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Experiences with Competitive Tendering of Bus Services in Germany

After a long transition period with only a few isolated procedures for competitive tendering, the market for German public transport bus services has seen numerous such tenders in recent years. The results are complex.

published in: Transport Reviews 11/2010

From the public transport authorities’ point of view, the main effects are a decrease in subsidy payments, with relatively low expenses relating to the tendering process. The overall level of competition is high, with five to seven bidders on average, although this has been declining in recent years. Entry barriers have been identified at significant levels for several parameters. Demonstrably small- and medium-sized transport operators have been able to increase their market share in the starting phase of introducing tendering, with diminishing success rates in recent years.

A direct link to the journal article can be found here.