Centro works in partnership with around 50 bus operators, local authorities and other organisations to improve the quality of bus services in the West Midlands.
Buses provide 92% of public transport journeys in the West Midlands and account for nearly one million journeys a day. There are a number of operators, the largest being National Express Group's Travel West Midlands, which accounts for 82% of all journeys made. The Arriva and Rotala groups have also extended their interest in the West Midlands through the acquisition of smaller bus companies.
Centro subsidises 7% of bus services – paying operators over £5m to run services which are not considered commercially viable, but are socially necessary, as well as funding free travel for all over-60s and disabled people, and half price travel for under 16's.
Centro cannot legally operate any of the socially necessary services, so when a need is identified competitive tenders are invited from bus operators who are currently registered on Centro's Tender List for the provision of such services.
Normally the lowest priced tender wins the right to run the service as long as the price is within the maximum cost per passenger criteria, the figure for which is annually adjusted for inflation.