Private contractors cannot make a profit because Government in whatever guise they are... Provincial, Municipal, National... interfere wanting to set both standards and price.... It's the same with the 'affordable housing, rental or buy argument'.... Both are oxymoron examples. 

The answer iro public transport is somewhere in between, minimum safe standards and service as opposed to something unaffordable and more luxurious. No one answer either, it's different in every instance.