There is obviously a demand for public transport (where else do we see three operators competing for the same passengers?) in the area, but I am not sure a shuttle service would work.

If someone is already using two buses (which is probable), introducing a third isn't going to be a very attractive to them.

Mind, sitting in a queue of traffic isn't either.

There is the 'more' scheme http://www.morecobalt.co.uk/travel/
which to me, shows that there is a serious positive attitude by Cobalt, towards encouraging travel by public transport.

Whether they can work with N Tyneside Council to change the road layout in the surrounding areas, giving more priority to buses - is another thing.
Imagine if their was one local body who were responsible for roads and public transport, rather than the fragmented system we have currently? I imagine that would help .