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Operator changes through competitive tendering: Empirical evidence from German local bus transport

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  • Augustin, Katrin
  • Walter, Matthias

Abstract

In this paper, we empirically investigate operator changes and the structural conditions in competitive tendering of bus services in Germany. We show that the focus has been on regional services, which has led to a loss in market share for the incumbent DB Stadtverkehr companies and gains for private companies, whereas municipal services have rarely been tendered out. The high average number of bidders (5.1) and the high probability of an operator change (58.2%) are positively influenced by tendering in larger volumes and longer contractual lengths. Tenders in early years have been more likely subject to an operator change. By contrast, complexity drivers such as the number of lines and mixed urban and regional transports exhibit a negative influence on competition.

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  • Augustin, Katrin & Walter, Matthias, 2010. "Operator changes through competitive tendering: Empirical evidence from German local bus transport," Research in Transportation Economics, Elsevier, vol. 29(1), pages 36-44.
    • Handle: RePEc:eee:retrec:v:29:y:2010:i:1:p:36-44
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    3. Filippini, M. & Koller, M. & Masiero, G., 2015. "Competitive tendering versus performance-based negotiation in Swiss public transport," Transportation Research Part A: Policy and Practice, Elsevier, vol. 82(C), pages 158-168.
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    5. Hoai Thu Tu Thi & Philippe Poinsot, 2024. "The Covid-19 crisis and the French urban public transport: what are the short-, medium- and long-term effects on provision and funding? [Crise du Covid-19 et Transports Collectifs Urbains en France," Post-Print hal-04740078, HAL.
    6. Andrea ZATTI, 2011. "Organizational models in European local public transport: is the new paradigm really dominant," Departmental Working Papers 2011-29, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    7. Vigren, Andreas, 2018. "How many want to drive the bus? Analyzing the number of bids for public transport bus contracts," Transport Policy, Elsevier, vol. 72(C), pages 138-147.
    8. Mizuta, Seiichiro, 2020. "Deregulation and competition in Japanese intercity coach industry," Transportation Research Part A: Policy and Practice, Elsevier, vol. 139(C), pages 17-34.
    9. Papaioannou, Panagiotis & Georgiadis, Georgios & Nikolaidou, Anastasia & Politis, Ioannis, 2020. "Public Transport tendering and contracting arrangements in countries under regulatory transition: The case of Cyprus," Research in Transportation Economics, Elsevier, vol. 83(C).
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