Adelaide bus service reform: Impacts, achievements and lessons

Adelaide's bus system has been transformed from a government monopoly operation to a competitively tendered system with services provided by private operators under contract. The 'Adelaide model' has unique features, and has been considered in several international reviews of urban bus service procurement. The paper reviews the experience in Adelaide up to 2006/07. It updates previous evidence that focused on technical efficiency impacts. It particularly examines the development of the system to address allocative efficiency, in terms of the quantity, quality and market orientation of the services provided, and the consequent effects on patronage.