Opening up the feeder bus mkt, they are just spliting up the
passengers, usually the ridership per day is more or less fixed,
furthermore, you allow 1 feeder rt for 1 add pte feeder bus rt, you
need more berths when bus interchanges like Boon Lay, Tampines are
packed enough during peak hrs!
Simply, 1 day now bus XYZ has 20,000 passengers a day, ttl revenue
collected is $12,800. If maybe the cost to profit ratio is 7:3, the
cost is $8,960. You split up now, because of compeition I might
need to keep up the same fleet, but my revenue is effectively
reduced by half to $6,400, now I'm making a loss even!
Had breakfast already?
