People talk about this being a replacement for busses, but I think that misunderstands what a bus service is. A bus service generally is a utility provided by the local government to meet the needs of constituents. The routes are determined by what the government decides are useful, not by which routes are profitable. The problem with introducing competition to this system is that a universally provided bus service is going to have profitable and unprofitable routes and cross-subsidization. If you introduce a new service that's private you're going to find that service very quickly identifies and competes for the profitable routes, but it won't have an interest in the unprofitable routes. Suddenly the local utility is more unprofitable than before, there's no reason for it to be running on routes that are now serviced by the private company, and now the private company can start extracting a higher and higher premium on the profitable routes.