Contracted Service

A journey that is operated according to a contract between two or more organisations, at least one of whom is a bus service provider. Most contracts of this nature provide financial benefit to the operator, usually from a council, and are legally required to be put out to tender among interested parties; payments vary in amount and means although values of around 4 per passenger journey are typical. Some contracts involve paying the relevant authority for the right to run the service instead of receiving a subsidy. In London, contracts involve Transport for London receiving all fares and instead paying operators a set fee.