TfL terminates Oyster card deal

 

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By Nicole Kobie

Posted on 11 Aug 2008 at 15:05

Transport for London (TfL) has ended a £100 million contract with the company that runs the Oyster swipe card system, seven years early.

The contract with TranSys, a consortium which helped develop and manage the Oyster system, started in 1998 and was set to run to 2015, but TfL has opted to leave at the ten-year break clause point, meaning TranSys will run the Oyster system for the next two years.

However, spokespeople for TfL claim the decision was to do with cost savings rather than the two crashes which have hit the system in recent weeks.

The failures corrupted cards and forced TfL to let travellers ride for free. At the time, TfL blamed the trouble on TranSys, saying the firm sent it incorrect data tables.

TfL also denied that the decision was related to the recent claims by Dutch researchers that they had been able to hack and clone the cards, describing the timing as "coincidence".

"We are looking at more cost effective ways to manage and develop the Oyster card system that we expect will save millions over the next few years," says Shashi Verma, TfL's director of fares and ticketing. "The savings will be reinvested to deliver further improvements in London's transport system."

One potential snagging point could be the name, which is owned by TranSys. Should the two companies not come to an arrangement, TfL could be forced to reissue around six million cards, potentially costing the body millions.

The swipe card system was introduced in 2003, and some six million cards are in use across bus, train and underground journeys in London.