ThereisnodoubtthattheurbanpublictrafficoperationsinChinasufferlossesandhenceitisnecessarytostudyresonablesubsidymechanismsfortheurbanpublictraffic.Onthebasisofanalyzingthemodesoftheurbanpublictrafficmanagement,weclassifythefinanciallossesintothepolicylossandthemanagementloss,accordingtowhetherthecostcanbecompensatedornot.Inaddition,aseriesofcriteriaareintroducedinordertoefficientlydecidetheamountofsubsidy.Finally,thispaperalsoexaminesthewayofbiddingadministration,whichisconsideredtobepromisinginthefutureofurbanpublictraffic.