No. Regulations have completely prevented anyone from ever building more public transit. One company, all they did was try to get a few more buses on the road, and they were shut down very swiftly.
I mean...there already are private shuttles and buses throughout LA. Tour buses are a tourist staple and I can't imagine there's much regulation there. I can only assume the particular bus you're talking about broke some law that I most likely don't mind is in place.