07 Jan 2020, 12:57 pm
#64
(07 Jan 2020, 11:57 am)omnicity4659 In my opinion, schemes such as Network One should be scrapped in favour of a capping system. So, it gives you the flexibility of having to just pay for the modes that you've used that day, it also allows customers to not "waste" unused days or modes on their existing season tickets.
Competition between operators isn't the answer. Business isn't a war and shouldn't be treated as such. What needs to happen is that the transport operators put their heads together and bring about a solution for attracting more customers - sometimes, a new management team is the answer to bring people committed and passionate about such a strategy.
I disagree that a capping system would be any better. The price would likely end up going up from what we have now.
There is no way that GNE would set their daily cap the same price as a single ticket between Gateshead and Metrocentre, which is what I pay per day for my All Zone monthly ticket!
If we take into account that on an average week I will use the bus for 6 out of 7 days, that still averages out at £3.65 a day. Better yet, if I only use it on average 4 times a week, that's £5.48 a day, only slightly more than a single journey on the X21.
Competition always has been, and always will be the answer to having a better service for the consumer.
The thing is in just about any other industry, collaboration between competitors would be seen as highly frowned upon and seen as anti-competitive
Now, I'm not saying it shouldn't happen, but I think letting the operators work together to bring a 'solution' is only going to end up making things worse and probably end up with a price fixing scandal
Price fixing
You must not discuss the prices you’re going to charge your customers with your competitors.
You’ll be breaking the law if you agree with another business:
- to charge the same prices to your customers
- to offer discounts or increase your prices at the same time
- to charge the same fees to intermediaries, for example retailers selling your products
And when GNE and Arriva agreed to not compete in each other's territories they were in breach of Market Sharing rules. Obviously there will be no evidence to back it up, but I'd be very surprised if this wasn't still going on between the SNE, ANE and GNE, at least in an unofficial capacity.
Market sharing
You cannot agree with other businesses to share markets or customers. You’ll be breaking competition law if you agree with another business:
- not to approach each other’s customers
- not to compete with them for customers, for example in specific locations
