The Values of Brand Reputation

If you’re a commuter in London and use the Oyster card system to pay for your travel, you’ll undoubtedly know about the twin failures of the system that affected pay-as-you-go travellers last month.

One beneficial side effect, as it were, from a travellers’ point of view was free travel during the times that Oyster cards didn’t work.

Now comes news that Transport for London (TfL) has fired Transys, the consortium that developed and manages Oyster in London, and will seek a new contractor from 2010 to manage the card system.

Or perhaps better said as a card system as according to The Times’ report, Transys owns the intellectual property rights to the Oyster brand and there seems to be some confusion as to whether the Oyster name will continue:

[...] A Transys insider said: “If we can’t come to an arrangement with TfL, they will have to issue a complete set of new cards.”

However, TfL sought to play down those fears, insisting that any transition to a replacement contractor would not affect Oyster users.

It said that as part of the contract, it had a licence to the intellectual property behind Oyster, which would continue even after Transys was replaced.

Shashi Verma, TfL’s director of ticketing and fares, said: “As far as our customers are concerned, they should notice no difference before and after Transys.”

However, sources at the contractor said that, while TfL had some ongoing rights to the cardless technology, it would have no rights to the Oyster brand.

The headline in The Times’ report assumes the Oyster brand name will disappear  - en route to history, The Times says - as a result of the forthcoming end of the business relationship between TfL and Transys.

Why should that be assumed? Conflicting statements aside - including this one from TechRadar today - the issue of whether TfL can continue to use the Oyster brand from 2010 onwards undoubtedly would be a negotiating point between the two parties.

I would imagine that TfL in particular will be considering the value of Oyster’s brand equity as they look ahead to a new travel card system for London.

They’ll likely want to research opinion among commuters, other travellers and other interested groups about the Oyster brand as part of gaining a credible view of how the brand is perceived. They’ll want to assess its overall reputation in light of any issues including last month’s problems.

Weighty PR-related issues for TfL and their advisers, especially with the London Olympics taking place within two years of any new travel card system being put in place.

Whatever it’s called.