Basic knowledge of route buses

We have summarized ideas and rules for items related to the route bus (sharing bus) business.

• Cost structure
• Net income and expenditure
• Operation efficiency
• Fare System
• The size of the vehicle
• The price of the vehicle

Route buses are said to be labor-intensive industries (industry with a high proportion of labor costs), and labor costs account for about 60% of the total cost. The rest consists of vehicle expenses, fuel expenses, taxes and insurance premiums, and general administrative expenses (office expenses required for business management as a company).

At present, the balance of route buses is very difficult, and about 70% of the number of routes operated by most bus operators is deficit routes (* 1), and the remaining 30% of surplus routes It is a situation that operates with profit.
In addition, the balance of bus operators is severe, and about 70% of bus operators with more than 30 vehicles owned nationwide are operating in the red (* 2).
※1: Bus Industry Study Group Report, April 2009 Bus Industry Study Group
※December 2014 Survey by the Ministry of Land, Infrastructure, Transport and Tourism

Route buses are based on round-trip service between stations and housing complex and offices. However, during commuting hours when passengers ride the most, there are many uses in the direction of heading to the station in the morning, and there is little use in the opposite direction, and the operation is biased.
Therefore, there are many routes that are often boarded during commuting hours, but there are many routes that do not match the balance when viewed on a round trip. Even if the operation is forwarded only in a direction with little use, efficient operation is difficult because the required time and labor costs do not change much.

In Yokohama city, two fare systems are broadly applied.

The bus operator will determine which fare system to apply based on the characteristics and profitability of each route, and will be reviewed by the Minister of Land, Infrastructure, Transport and Tourism to determine whether it is appropriate and approved. You.
The fare for route buses is based on the “upper limit authorization system” in which the maximum amount applied by the bus operator is approved by the Minister of Land, Infrastructure, Transport and Tourism. If it is within the range of this approved upper limit, the operator can set the fare flexibly by notification alone.
In addition, when applying for the upper limit, the cost is calculated by summing the standard cost and profit of the operating area (Keihin Block in Yokohama) so that the management efficiency of each bus operator is not reflected in the fare.
※Keihin Block: Tokyo Special Ward, Mitaka City, Musashino City, Chofu City, Komae City, Yokohama City and Kawasaki City

The maximum dimensions of vehicles that can pass on the road are stipulated by the Vehicle Restriction Ordinance that the vehicle must not exceed 2.5m wide, 3.8m high, and 12m long. Vehicles smaller than this can pass without permission.
In addition, the types of cars are classified according to the Road Traffic Law Enforcement Regulations, and those with a capacity of 30 or more are classified as large vehicles.

The vehicle price of a route bus cannot be said unconditionally because the internal equipment and external specifications differ greatly depending on the bus operator, but the vehicle price is around 20 million yen.