06 Jan 2020, 10:20 pm
#61
(06 Jan 2020, 9:10 pm)OrangeArrow49 Why not? GNE is way better than Stagecoach. Yes, I know about Magic Buses and Stagecoach buying out all their competitors, what about it?They couldn't force GNE out. Depends what Stagecoach territory is, the West Road could be seen as Stagecoach territory, the 685 is even shared with Arriva, yet GNE introduced the new expresses in 2013.
As it makes no sense from a business point of view.
Lets say Stagecoach made £100k in the West End and £100k in Gateshead per year. If GNE decide I want to take £50k to take from the West End. Stagecoach's first reaction will be well I want £50k from GNE in Gateshead to make this up.
Now as you've got competition the first thing you will do is have a price war so now both Stagecoach will have £40k in both the West End and Gateshead and the same for GNE. -£20k each. You've also got the issue that Stagecoach and GNE now both have a new depot to run these buses, twice as many buses thus more wages, more maintence. Not the mention the money you've spent to setup the routes.
In the end you've now both lost money for the sake of nothing. That's why.
