Shares in online rail and bus ticket firm Trainline plunged by as much as 34% in early trading on Thursday, after the government revealed plans to launch a state-owned ticket retail platform. The shares later regained some ground, but remained sharply lower.
Under the reform of the rail sector, Great British Railways (GBR), a new public body, will sell tickets via its own website and app, directly competing with private companies. GBR will also set timetables and prices, and manage rail infrastructure. The government aims to simplify the current confusing array of tickets, with more pay-as-you-go, contactless and digital ticketing on smartphones, as well as streamlined compensation for delays.
Trainline, which has operated for more than 20 years, said it believes its technology and customer experience are a “huge differentiator”. The company said it will continue to work with the government on the details of future ticketing reforms. From 21 June, flexible season tickets will be available for commuters travelling two or three times a week, allowing travel on any eight days in a 28-day period.
The government said walk-on fares will be set by the state and season ticket prices capped, but private train operators will have more commercial freedom on long-distance fares. The overall reforms are intended to boost competition and improve passenger experience.
