Privatisation of London Bus Services - Introduction of Competition

Introduction of Competition

Under the 1984 Act London bus services were to be tendered. The first round of tendering took place in the summer of 1985, bringing the first private operator into the market, in the form of London Buslines on route 81. By 1988 Metrobus, Grey-Green and Boro'line Maidstone were also operating numerous London routes.

Controversially, these operators were not required to wear a red livery, meaning that for the first time it was possible for non-red buses to run into the centre of London, such as those on high profile route 24 operated by Grey-Green. The only requirement was to display the London Transport roundel on the bus, to designate a London Transport tendered service. Ironically, several of the new private entrants were descendants of London Transport's former 'green' buses division, which operated outer London services that were passed to the National Bus Company's control as London Country Bus Services, in 1969.

The private competition was not without controversy, with objections to non-red buses leading to a change in the rules in 1997 to specify 80% red liveries. The tendering also caused problems with several operators needing to hire buses due to late delivery of new buses for newly won routes.

One such controversial route was the arrangements for tendering route 60 which was initially awarded to Capital Logistics. Difficulties in setting up the route eventually saw operation by 8 different operators and 10 different bus types in a short space of time, before the route finally gained a stable arrangement.

The collapse of a rather large private operator, Harris Bus, led to the formation of East Thames Buses by London Transport, as an arm's-length company to provide temporary operation of the routes. It was since subsequently retained by the new Transport for London authority, for tendering for routes itself. In 2009, it was announced that East Thames Buses was to be transferred back to the private sector with sale of vehicles and TUPE transfer of staff to London General, part of the Go-Ahead Group.