Independent bus operators say a provincial pilot project that opens up school bus routes to tender could put them out of business.

This year, First Student Canada is among the companies that won't be getting ready along with the students preparing to head back to school in Waterloo Region.

It is closing down its Kitchener division and stopping charter service in the region because it lost its bid for the school contract last year, and now other bus operators are also concerned about their businesses.

Ruth Anne Staples, co-owner of Epoch's Bus Line, says "Basically this has taken away 70 per cent of our business."

Lesa McDougall, co-owner of Cook Bus Line, says "We were one of only two independents who were fortunate to get one route back again, so we lost 20 per cent of our business initially."

After losing out on the bidding process, First Student Canada began offering buses for things like day trips, but that will end in September and their Kitchener location will become a service centre only.

A rally was held last week in Mount Forest to protest the provincial pilot project, which independent operators say is forcing them out of business.

They claim the bidding process ignores safety and just grants the contract to the lowest bidder.

But Benoit Bourgault, general manager of Student Transportation Services of Waterloo Region, says that's not the case.

"We look for best value, which is predominantly safety first…so it's all the components of a safe program."

Meanwhile McDougall says independent operators are losing out and "For right now our number one object is to have the process stopped."

The province has put a moratorium on the requirement for a competitive bidding process until it is examined further, but independent bus operators say that's not enough and have launched their own review.