Thinking of Franchising? Right-Sizing Your Technology Approach
10 December 2024,
At Euro Bus Expo 2024, Vix Technology’s Product Director, Sue Walnut, delivered an insightful talk on how local authorities can approach franchising in a way that balances their goals with practical, technology-driven solutions. Here’s a recap of the key points discussed.
Franchising Goals: Connecting Communities
The Bus Services Act 2017 gives local authorities in England the power to adopt franchising models, enabling greater control over bus networks. Authorities like Transport for Greater Manchester (TfGM) and Transport for West Midlands (TfWM) aim to deliver networks that are accessible, affordable and environmentally sustainable.
Franchising offers the chance to:
- Establish integrated and inclusive networks;
- Standardise fares and improve reliability;
- Increase bus ridership and reduce car usage;
- And ultimately create sustainable, liveable cities.
However, challenges like fragmented networks, confusing ticket options and falling patronage must be addressed to achieve these goals.
Where Technology Comes In
Sue highlighted three core areas where technology can play a transformative role in franchising.
- A Unified, Smarter Network
Aligning or sharing scheduling systems across franchisees and the Transport Authority enables better network coordination. In addition, using information from real-time information and ticketing systems helps to evaluate the efficacy of the network. This joined-up approach enables authorities to reduce fragmentation and improve service integration.
- Affordable, Standardised Fares
In franchised networks, fare policy is the responsibility of the Transport Authority. Their investment in fare collection technology depends on how hands-on they want to be. Options include: Replacing all ticketing systems and back offices; or keeping existing ticketing hardware and integrating devices to a shared ABT system. A shared system with one payment service provider can enable contactless with fare capping to be offered across the network – creating a simple payment experience for passengers regardless of the operator they choose to ride with.
- Enhanced Service Monitoring
Robust fleet management systems can help Transport Authorities to understand whether bus operators are meeting their franchising commitments. A platform can be shared across the Transit Authority and operators to provide clarity on reliability, punctuality and service usage. This creates opportunities to spot issues before they become critical, and the system should enable active intervention by operators.
Heavy, Medium or Light Touch?
Sue emphasised the importance of aligning technology choices with the level of control an authority wants over its technology and network:
- Heavy touch: Full control, requires significant investment in hardware, systems, and people, but can make the technology ecosystem simpler.
- Medium touch: Collaborating with operators, utilising their expertise and integrating with their hardware, while maintaining a unified passenger experience.
- Light touch: Minimal intervention, focusing on branding and overarching standards.
What’s Next?
Franchising is not a one-size-fits-all approach. By carefully defining their level of control and leveraging the right technologies, authorities can achieve a balance between meeting passenger needs and managing resources.