The public transit system used to be privately owned and operated. Then the cities took over and kicked out the private sector. Now we have terrible public transit. Yes, even the subways in NYC were built and operated by private companies (there were two, and they competed).
Here in Paris, public transit is run by the state since the war and works really well. It's going to be open to private concessions in a few years (buses first, subway in 20 or 30 years) because of European regulations, I'm not sure it will change for the better...