Friday, 7 December 2007

Lemon goes Sour

The Big Lemon, Brighton’s big yellow hope, seems all squeezed out. It had previously decided to review its services in November but a month-end statement revealed its perilous financial position was worse than expected, forcing drastic action. Upon being up-front and informing drivers of plans to slim down, many left, with too few to operate the service. So that was that.

And it's amazing that in spite of the efforts of Brighton & Hove and its partner council, there is such a groundswell in Brighton of latent support for The Big Lemon and antipathy (or worse) towards B&H. Many in the industry place B&H on a pedestal but many in Brighton cite expensive B&H fares in particular—at £1.70 single, once 70p flat.

Undaunted, The Big Lemon still has plans to operate what it calls a “leaner service” coupled with a novel idea of “clubs” where local people pledge support for a route by becoming paid-up “members”. In return, they can have a say in the service. In theory, a critical mass of members means a service can start. Whether this untried principle will work remains to be seen but it does tie in with the idea of being a community interest company. And it's a potential unique selling point. Of course, there are flaws: would being a member raise expectations of control? Would investor members take account of the current collapse?

We’re not sure what the traffic commissioner would make of a leaner, phoenix service after the existing one disappeared so rapidly. Whatever happened to 56 days’ notice? And will drivers readily work for an organisation—even as honest as The Big Lemon—without a second thought?

The Big Lemon’s MD cites lower passenger numbers and “competition from Brighton and Hove Bus and Coach Company”. If the truth be told, B&H didn’t compete with The Big Lemon, it was the other way around, though the decision to reduce day tickets throughout the core B&H network from £3.20 to £2 at weekends may have had an effect on The Big Lemon's single route.

It’s been a short ride for The Big Lemon, having only started in September. It’s unique selling point of using recycled biodiesel was perhaps not so unique when compared to rival B&H, whose newer, cleaner vehicles were already operating on a biodiesel mix.

There are lessons to be leaned. You need to have your demand forecasts right. Start up costs in the low-cost end of the bus industry may be cheap but you shouldn’t underestimate them. Running a bus company is no longer an easy option. You can never overlook fixed, semi-variable or variable costs such as driver absenteeism, diesel price increases, the costs associated with garaging, licensing and maintenance.

7 comments:

Anonymous said...

From VOSA:

PK1068783/1 THE BIG LEMON C.I.C. T/A THE BIG LEMON, 8, NORFOLK STREET , BRIGHTON, BN1 2PW
Cancellation Accepted: Operating between Falmer Station East Sussex and Brighton Sattion Brighton and Hove given service number 42/42X effective from 29-Jan-2008.

Anonymous said...

"The Big Lemon’s MD cites lower passenger numbers and “competition from Brighton and Hove Bus and Coach Company”."

Quoted for truth. Another great post.

Anonymous said...

I actually forgot to quote the important bit: "If the truth be told, B&H didn’t compete with The Big Lemon, it was the other way around"

I'm glad to see, though, that when it doesn't work out Big Lemon takes stock and tries to make changes. The original business model just wasn't going to work.

Anonymous said...

All too often when competitive (or slightly dodgy) operators cease services, they simply don't run and don't tell anyone about it. An example would be Crown Coaches in Essex who took over 35 Chelmsford - Southend from Stansted Transit, who were unable to make it a success. They themselves had taken it over from First Essex who found it unviable. Crown never registered the service, constantly changed the timetable by way of notifying it through on bus notices, and then didn't adhere to it. Finally they stopped running it and left it to First staff to put up a notice saying "It would appear that Crown service 35 is not running today". A director then claimed they had been subject to vandalism, the police said they had not been reported to them and the drivers hadn't been paid. The service has now been replaced by Regal (running to a slightly different route, and numbered 3), with Crown's other service taken over by NIBS. As a postscript a registration for the service finally appeared in the weeks N&P, long after it had ceased running. This is an example of how NOT to do things if you can no longer run your service, whereas at least Mr Druit has given out information.

cogidubnus said...

I expect the Traffic Commissioner would take a very sudden interest in Brighton and Hove if they started withdrawing services without notice...at the very least they'd probably be called to Inquiry...

It remains to be seen whether the same standards will be applied to Mr Druitt...the law is supposed to be the same for small operators as big ones...

pompey said...

There is a small operator based not a million miles from , Emsworth, Hants who does'nt seem to have registered a change of route or timetable in four years, despite having altered things around a couple of times in that period, (his biggest route is now totally different from what is registered).

Have VOSA picked him up on this? Have the BSOG auditors noticed? Has the Commissioner had him in court?

No...have they hell...they only bother looking at the big boys, presumably, (and I'm being generous here), because they're an easy target

Anonymous said...

just a quick post on the subject of the Big Lemon and the 'travel club' idea. This is not new in fact it was the way that Thames Weald was set up back in the early 60's. The idea was that people subcribed to a 'club' and then paid for journeys as well. it was then found to fall foul of the regulations and the Thames Weald Travel Society became Thames Weald the bus operator