The case for efficiency
Is outsourcing transit services good or bad?
The outsourcing of transit services, whether we’re talking about operations, maintenance or vehicle overhaul, is a subject that tends to lead to heated arguments.
Many public agencies believe that it’s more efficient if they maintain control of the operation and the employees, while others subscribe to the notion that the private side can squeeze more efficiency from their operations because they have to worry about the bottom line. Even more to the point, publicly owned private operators have to answer to their shareholders, which forces them to find efficiencies and cost savings in places that many public agencies would not think to look.
Efficiency at all cost
I recently visited a private bus operation and discovered that they trained their entry-level bus fuelers — the only people in the facility who see every bus each day — to perform supplemental inspections of the vehicles. They check the oil and fluid levels, tire pressure and lights. They empty the farebox and mop the floor of the bus. Nothing is wasted.
These inspections are not designed just to keep the fueler busy; they’re put into play to save money. The fueler can reduce the amount of routine work done by the regular technicians, freeing them up to focus on more skill-intensive duties.
I should add that the garage was immaculate and designed to maximize safety. The technicians all wore shirts with retroreflective stripes to enhance their visibility. A pre-shift meeting was held to discuss companywide safety concerns.
Properly embraced, adherence to safety principles can save money. But so can heightened productivity. The technicians in this garage, I was told, could do the work of twice as many technicians employed by a public agency. See what I mean about the arguments?
The 150 or so buses in the parking lot were in great shape, even though many of them were 8 years old or more. They are cleaned daily by a janitorial crew, and all graffiti is eradicated by the time the buses leave the yard. It’s an impressive setup.
Other private advantages
Yes, I know that public operators also show pride in their work and know how to make sure that they stay under budget. They, too, can squeeze savings from unexpected places. But they might not enjoy some of the financial advantages that some private companies have.
For example, some of the larger contractors have national accounts with vendors for supplies such as motor oil, tires and uniforms. Through these agreements, they can cut their parts costs significantly. They can also buy big-ticket items, such as buses, in large blocks, helping to minimize a key capital cost.
In this age of tight budgets and public demands for higher levels of service, the use of private contractors should be examined by transit systems as a way to reduce costs, improve efficiency and add the element of competition into the process.
If they agree that outsourcing meets their needs, transit systems need to set high standards for their contractors and hold their feet to the flames when those standards are not met. Contractors, meanwhile, need to focus on the mission of the transit system, providing great customer service with safety and efficiency, and to meet the financial objectives of their owners. If they can’t do both of those things, they will not survive and the next fittest contractor will take their place.
It’s a jungle out there, even in the transit world.
More Management

VIA's Silver Line Clears Environmental Review, Advances Toward Construction
The VIA Rapid Green Line is currently under construction, with service expected to begin in April 2028.
Read More →
Modernizing Mobility with CharterUP CEO Armir Harris
From digital transformation to evolving customer demands, CharterUP's Armir Harris offers his perspective on the transportation industry's next chapter.
Read More →
CTTC Enhances Transit Workforce Pipeline Through New Partnerships and Leadership
The group's latest initiatives focus on developing talent, expanding training opportunities and addressing workforce needs across the transit sector.
Read More →
San Diego MTS Keeps Service Intact With New FY 2027 Budget
The approved spending plan avoids route cuts and lays the groundwork for addressing transit funding challenges through the end of the decade.
Read More →
Solving The Driver Shortage: What Transit Agencies Can Learn From the Trucking Industry
See how transit agencies facing persistent driver shortages can learn from the trucking industry’s evolving strategies for recruitment, retention, workplace conditions, and more.
Read More →
FIFA World Cup Matches Are Driving Record Transit Ridership Nationwide
See how World Cup matches are generating record transit demand across North America, with ridership surpassing Super Bowls, concerts, and Olympic-era events.
Read More →
The Hidden Cost of Fuel Data Inaccuracy in Public Transit Fleets
In today's transit environment, accurate fuel and mileage data are critical to reducing costs, minimizing downtime, and improving fleet performance.
Read More →
Virginia's $28.5B Transportation Plan Targets Transit and Rail
Approved by the Commonwealth Transportation Board, the program supports ongoing infrastructure projects while providing new investments in transit, state of good repair and transportation alternatives.
Read More →
Latinos In Transit Seeks Host Organization for 2027 Leadership Summit
The selected host organization will showcase its transit system, projects, and community while welcoming hundreds of industry leaders and emerging professionals during Hispanic Heritage Month.
Read More →
Bipartisan BUSES Act Seeks Changes to New York City's Bus Idling Enforcement Program
Backed by motorcoach operators, the legislation seeks to balance emissions goals with passenger safety by allowing limited idling for inspections, accessibility needs and extreme weather conditions.
Read More →