The bus transport sector evolved from a highly regulated and concentrated market with a handful of players in the 1970s to a more liberalized albeit still regulated market with hundreds of small operators. Major reforms in bus transport regulation were carried out in the early 1990s and 2000s among which were more liberal policy and a supposed moratorium on new franchises. The current market operates under a complicated regime where regulation and enforcement is shared by several agencies. Market inefficiencies manifest in too many operators and buses, and indiscipline in the road adding to traffic congestion problems in the Metro. The fragmented nature of both the sector`s regulatory and supply side impedes synchronization among stakeholders and incurs huge costs to industry operators and the riding public.
