(14 May 2023, 2:31 pm)Rob44 wrote Ive been on this site for a while and im still confused about this bids/tenders/returnS!
How can go north east sell there own tickets ( as they are advertising on FB for the 79) on a NEXUS service? Surely only NExus tickets could be sold and the fares collected go back to NEXUS. I know dan said a while back that the 317 run BY SCNE kept all the fares which was reflected in how much they " bid" to run it but it seems confusing to me?
If GNE keep all the fares what stopping them from example cutting a service to zero even though it was showing after a profit of say £5 per week? The when NEXUS put it out to tender bidding 52K a year meaning ( in very simple terms I know) they go from only makeing £5 a week to making £1005 Per week?? Even if they lost it they could then just turn around and say they will rung it commercially so there isnt a risk that I can see?
The operator decides in their tender submission whether or not they wish to take the revenue risk, and Nexus will determine what they believe offers the best value for money.
Even on contracts where the revenue risk lies with Nexus (as is the case here), the operator is able to sell and accept their own commercial products, subject to them coming to an agreement with Nexus on the financials for reimbursement.
On contracts where the revenue risk lies with the operator, the subsidy from Nexus is then reduced and the revenue taken onboard is effectively a ‘top up’ of the subsidy received from the local authority.
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