| With the development of globalization and marketization, the Western countries from the beginning of the1970s have entered the era of government reform to break the traditional public service monopoly supply is characterized, proposed deepening reform of China’s administrative system, breaking the monopoly supply situation. As one of the municipal utilities, public transportation industry breakthrough of the past pattern of inefficient government monopoly, to accelerate the process of the market, the introduction of private capital to participate in the competition, the effect achieved some reforms. However, due to the privatization process of reform in the absence of government regulation, reform of the bus industry is increasingly exposed to some deep-seated problems. What is the future direction of China’s bus industry reforms? What should government in the development of public transport industry serve as? What kind of model can better promote the privatization of urban public transport development? Research on these issues is very necessary.Based on the previous research literature on the analysis of typical cases, using the method of combining theory and practice, to explore the development direction of the bus industry, to provide a reference for policy recommendations to the government. First chapter of this article introduces the background of this article, significance of the topic, research methods, ideas, and research literature review and abroad. The second chapter describes the basic concepts and privatization of urban public transport theory, laid the theoretical foundation for the development of public transport privatization. The third chapter reviews the development history of urban public transport industry, introduces the current status of the development of the bus industry, outlines the development process of privatization of urban public transport problems in our country and the reasons. Chapter IV learn from the experience a higher level of development of foreign bus privatization of the city, summed up in favor of privatization of urban public transport development of the practice. Chapter V concludes the paper and recommendations of urban public transport measures, including establishing a scientific concept of privatization, strengthening the regulatory system construction, the development of diversified forms of government regulation system and deepen the nurturing regulated market mechanisms. |