How do bus operators in London start?

[wanderingriver]

I’ve been thinking about how would a bus company be started in London? Obviously they have to get their operators license and have a bus fleet but do they need to do anything else? For example would they need to be part of the iBus system and ask TfL for Oyster card machines or could they run on cash if they wanted? Or even both. I know it’s a lot of questions at once but just something that popped into my head

 

[greenline712]

I’ve been thinking about how would a bus company be started in London? Obviously they have to get their operators license and have a bus fleet but do they need to do anything else? For example would they need to be part of the iBus system and ask TfL for Oyster card machines or could they run on cash if they wanted? Or even both. I know it’s a lot of questions at once but just something that popped into my head

Oh, where to start?
If operating routes commercially, then they'd need permission from TfL via a London Bus Permit for the routing, timetable and terminal points. They would not be part of iBus or Oyster. They would need their own ticketing system, and would need to comply with BODS (Bus Operator Data System), just as an operator outside London would. This is in addition to the usual Operators Licence requirements.

The alternative is to sign up to the TfL conditions via a Foundation Agreement .... this is a requirement of all operators that wish to run TfL contracts. There are extremely onerous conditions to meet ... not just Health and Safety, but HR, modern Slavery declaration, inspection and approval of maintenance premises and a myriad of other requirements.
A TfL contract is almost risk-free, financially ... if you run the mileage, and meet EWT (excess waiting time) targets, have no complaints ... then you get paid, even if the buses run empty!

In summary, TfL would own you body and soul ... that's all well and good if you run thousands of buses, but for a new starter ... I really recommend against it.

There is a reason why small operators don't run in London ....

 

[stadler]

What are the requirements for getting a London Bus Permit issued? Am i correct that it has to be a cross border bus route from another county in to Greater London or a tour bus route instead? For example would a private bus company be allowed to apply for a London Bus Permit to run a local bus route entirely within Greater London competing with TFL services? Or would such an application get refused?

 

[Edvid]

Intra-London routes can be granted a London Service Permit for specific purposes. In addition to sightseeing buses, there are shuttle buses serving places like the hotels around Heathrow, and various temporary routes for events.

The H21 / N30 are a bit different - at a glance they appear to be 'regular' intra-London routes on a LSP, albeit the H21 is quite short and the N30 is clearly night-only. Maybe they're filling gaps TfL chose to leave alone.

Nonetheless, the majority of (permanent) LSP routes are, unsurprisingly, cross-boundary. This includes express routes that utilise coaches (National Express etc).

London Service Permits

Applying for a London Service Permit to run a bus, coach or tour service outside the TfL network.

tfl.gov.uk

 

[pokemonsuper9]

The H21 / N30 are a bit different - at a glance they appear to be 'regular' intra-London routes on a LSP, albeit the H21 is quite short and the N30 is clearly night-only. Maybe they're filling gaps TfL chose to leave alone.

both of them probably receive funding from Heathrow too, the N30 has free travel for Heathrow Staff and the H21 is only a £1 fare.

 

[greenline712]

What are the requirements for getting a London Bus Permit issued? Am i correct that it has to be a cross border bus route from another county in to Greater London or a tour bus route instead? For example would a private bus company be allowed to apply for a London Bus Permit to run a local bus route entirely within Greater London competing with TFL services? Or would such an application get refused?

Far too long to list here, but search "London Bus Permits" and all will be made clear!
A cross-border route will almost always be granted a LSP (London Service Permit). A route wholly within London will have to prove that there is a need; is there a demand not met by the existing TfL network?

Since the criteria within London is that every residence should have a bus service within 400m (unless there are physical restrictions in place), good luck finding a "network gap" worth filling!

And, whilst a Rail Replacement service doesn't need a LSP, if it is replacing an Underground or Overground train, then that'll be a TfL contract. A National Rail replacement will get sourced by the TOC involved, so no chances there!