Mumbai: Why BEST relies on wet-lease buses, private contractors

Under wet-lease, BEST does not own the buses. Instead, it has contracted private operators, who provide both the buses and drivers. The contractors are responsible for the maintenance of the buses, as well as hiring of drivers and conductors. “BEST pays the contractors a fixed rate, usually on a kilometre basis. BEST also decides the routes, schedules and fares for the services so that the contractors meet its operational objectives and the city’s demands,” a senior BEST official said.

BEST relies on the wet-lease model to cope with the growing demand for public transport in Mumbai. The model has become an essential part of BEST’s operations, particularly as it helps the organisation manage its fleet without the heavy financial burden of directly owning and maintaining buses.

The idea of wet-leasing buses by BEST was first put forth in meetings with the then BMC commissioner in 2019 following which the model was approved and operationalised.

Why wet-lease

One of the basic reasons to opt for wet-lease model is cost-effectiveness. Purchasing new buses, maintaining them and recruiting a full-time workforce can be costly. Under the wet-lease model, BEST can expand its fleet without incurring these upfront costs because the core activities can be taken up by the organisation, and buses can be handled by other contractors.

The wet-lease model also offers flexibility as the number of buses to be deployed can be varied according to demand, thereby allowing BEST to scale its services efficiently. “It also helps in dealing with fluctuations in public transport needs, especially during festivals or special events, by increasing the number of buses when required,” an official said.

The wet-lease model has been instrumental in helping BEST maintain a steady supply of buses, especially in the face of a shrinking fleet of self-owned buses. It supports BEST’s efforts to provide affordable, reliable public transportation across Mumbai, including its suburban areas.

Wet-lease fleet

At present, a significant portion of BEST’s bus fleet is managed through the wet-lease model. With private contractors providing a large share of the buses, it allows BEST to keep up with growing passenger demand in Mumbai while ensuring operational consistency.

As per the latest figures, BEST operates 1,892 wet-leased buses out of its total fleet of 2,890 buses. “Currently BEST is in contract with six wet lease contractors,” said an official from the traffic department of BEST. The companies are Maruti (625 buses), Tata (340 buses), Mateshwari (570 buses), Olectra+ (40 buses), EV Trans (267 buses) and Switch (50 buses).