(28 Jul 2022, 5:24 pm)OrangeArrow49 wrote JH Coaches are competing with GNE, via Nexus. Apparently the 82 is cheaper than equivalent GNE services. I'm not sure what the fares are from Gateshead. Nonetheless it's nice to see independent operators around the region, even if on secured routes only. Perhaps the wrong thread here, but Gateshead Central Taxis seem to be disappearing from much of the region, I'm curious to see if they keep the 84/84A, 335, 342, 516 etc come March. Personally I'd like to see the 84/84A/342 merged and coordinated with the 335. Arriva would be a good operator for these.
How are JH Coaches competing with GNE via Nexus?
They are being paid to provide a service which Nexus have deemed socially necessary through a tendered bidding process. JH Coaches may have registered the lowest price for that contract, but I suspect they were bidding against a range of operators, not just GNE. As we've seen with other operators in the region recently, the lowest bid isn't always the most sustainable bid, which is why the contract sometimes put back out to tender. Now I'm not suggesting that this is the case with JH Coaches, but I guess we'll soon find out whether their bid was too low if the service is re-tendered and they don't win it.