A bus war is a brutal for of price war. In terms of the example above if one bus company lowers its prices to go from the city center to a village and another bus company that runs the same route does not then bus users are likely to switch from one bus service to another. A bus war is far more amplified than a price war as the businesses are pinned to a certain route pitched directly against each other.
In the mid 2000s Stagecoach's quest to increase its market share organically rather than taking over firms it created deadly bus wars across the country one such brutal war of economics was in the city of Preston. Preston was targeted by Stagecoach and the creation of Preston Citi was the 'army' they committed. Preston Citi was a re-branding to take Preston Buses advantage in identity with the city it would also give Preston Citi more freedom to compete with Preston Bus. In key areas across Preston, Preston Citi bus were launched in direct competition with Preston Bus. Preston Bus responded like wise.
Soon Preston Bus and Preston Citi Bus were running simultaneous in direct competition, both lowering their prices against each other. Preston Bus lowering its prices to force out Preston Citi and Preston Citi lowering its prices to drive out Preston Bus.
One of the critical battle grounds was Ashton, were bus tickets into Preston Centre were as low as 40p at one point, a stark contrasts to other routes were Preston Citi was charging well over £1.
It was not just price competition, Preston Citi also launched loyalty schemes such as day riders and mega riders which proved successful in capturing control of the market.