The ten year contract will see Cubic partner with John Laing PLC to design and build a next generation ticket and billing system which will allows passengers to pay for their journeys using contactless bank cards and mobile services such as Apple Pay.
Transport for London has defended the repeated extension of a consultancy contract worth almost £2m over a seven year period without asking rivals to tender for the work.
First mooted in 2014 and coming into effect last October, the move was controversial with some of London’s 21,000 taxi drivers who saw it as an unwelcome and unnecessary financial burden at a time when the trade was facing unprecedented levels of competition.
The 24-hour services will operate on Friday and Saturday nights on the London Overground between New Cross Gate and Dalston Junction, extending to Highbury & Islington next year.
Tasked with helping to promote the capital and attract inward investment, City Hall’s first batch of offices were opened by former mayor Ken Livingstone before being reviewed and overhauled by his successor, Boris Johnson.