Trainline PLC (LSE:TRN) shares fell another 5% on Wednesday after the Department for Transport said it planned to consolidate online ticket-buying for Great British Railways, but still with a role for private sector ticketing.
The DfT said that once GBR is established "it will retail online by bringing together individual train operators’ ticket websites".
GBR's ticketing will "work alongside" the private sector retail market, such as Trainline, with the DfT's vision being that "all rail retailers can compete in an open and fair manner", with the private sector continuing to "play a key role" through innovation and investment.
Transport Secretary Heidi Alexander and Prime Minister Kier Starmer aim to simplify the complex fares and ticket structures currently in place across different rail franchises.
On Monday Trainline shares fell over 7% on a speech by Alexander, where she stressed that reforms of ticketing and fares were some of her key priorities for GBR, as well as expanding the pay-as-you-go system.
Responding to the DfT statement, Trainline said on Wednesday that the structure of GBR's retailing "will take several years to realise" and it welcomed the sound of "a level playing field and a strong independent retail sector".
In the coming weeks, the DfT will launch an industry consultation on the proposed Rail Reform Bill.
Trainline chief executive Jody Ford said: "As the UK government further outlines Great British Railways' approach to retailing, we welcome their unequivocal commitment to a competitive retail market, underpinned by a level playing field, and recognition of the value and innovation that brings to rail users."
A DfT spokesperson said: "As the Government establishes Great British Railways, it looks forward to the private sector continuing to play a key role in driving growth through innovation and investment and encouraging more people to choose rail. We will work in close partnership with industry and the private sector to achieve this."
Trainline says it is the UK's most used travel ticketing app, with 18 million customers.