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Our business model

Creating value for all our stakeholders through our sustainable business model.

 

Click on the discs to use our interactive business model

Revenue and profit are generated through our three operating divisions;  regional bus, London bus and rail, in two main ways:

 

1) The provision of transport services to fare-paying passengers, whose revenue covers the cost of service and a profit margin. Most bus operations in the UK outside London operate on this commercial basis

2) The provision of passenger transport services on behalf of public sector transport authorities. We tender for,  and operate, contracts in two main sub-categories:

• Gross cost contracts  where our entire revenue comprises payments made by the transport authority to us with the authority retaining all fare revenue raised and therefore revenue risk. This includes the  UK London bus market and the GTR rail franchise

• Net cost contracts  where our revenue is a combination of income from fares and payments from transport authorities. Most UK rail franchises are run on this basis.

 

Enabled by our key relationships with stakeholders and resources:

Our people

We directly employ almost all the people involved in providing our services

Buses and trains

All our trains are leased and we own our regional bus fleet. In our London bus business, around half of our fleet is leased and half is owned.

Infrastructure

We pay for the use of public sector infrastructure such as railway tracks or local authority bus stations. We own the majority of our bus depots, but rail depots are rented from Network Rail or similar provider.

Fuel

Our vehicles are mainly powered by a combination of diesel, electricity and gas.

Finance

We are financed through a combination of investment from our shareholders, bank and other debt and also through profits generated by our operations. After payments to transport authorities and infrastructure providers, our largest costs are those of employing our people, funding our vehicle fleets and fuel

 

 

Driving performance in our key areas: 

Our strategic objectives:

Read about our strategic objectives

Our robust governance framework

Read our corporate governance report

Our approach to risk

Read about our approach to risk


 

Creating value for a broad range of stakeholders:

At Go-Ahead, we believe it is important to deliver shared value. Our bus and rail operations create value for our passengers, the communities we serve and our people. We deliver high levels of services to our transport authority customers and strive to be a reliable partner to our industry colleagues. Through our robust business model, we are committed to delivering sustainable shareholder value. We also create benefits for the UK economy by enabling access to work, education, retail and leisure, and through employing 28,000 people, the taxes we pay, payments to our suppliers and the contribution our rail franchises make to the Government.

To build a sustainable business for the long term:

We reinvest profits into our services to maintain our position as a leading provider of passenger transport, also ensuring that our business activities and contribution supports the economy.

To build a sustainable business for the long term:

We reinvest profits into our services to maintain our position as a leading provider of passenger transport, also ensuring that our business activities and contribution supports the economy.