RE: Gateshead Central Taxis
Broadly, the tendering authority sets the specification (e.g capacity, emissions standards etc), frequency, fares, route, duration etc. Operators then bid and the authority chooses Gateshead Central..... Up here, it seems these days that cheapest bid wins. Or the most economically advantageous bid. Not sure what weighting quality has. Funding will generally either be the operator gets paid x amount per mile/bus hour and the authority keeps the revenue, though in some cases the operator may get a cut of the revenue.