A monopoly may be publicly or privately owned. In almost all cases, instituting a public monopoly structure is inadvisable. The experience of developing countries around the world shows that public monopolies fail to deliver a sustainable public transport service.
There are several inherent disadvantages of a public monopoly system. Poor service because of a lack of competition is a typical example. Another is the inability of public monopolies to generate sufficient funds to pay for bus maintenance and investment in infrastructure. A privately owned monopoly, unless effectively regulated, may also have serious disadvantages. A common problem is exploitation of the users, by offering inadequate or unsatisfactory services at excessive fares.
As with the public monopoly, there is a tendency for staffing levels, wages and other costs to rise at a faster rate than they would have done under a competitive regime. In addition, depending on the financial incentive program and the extent of the government's powers, there may be a tendency for service quality to be poor, with the service catering only to those with no choice of transport mode.