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AbstractThe accurate evaluation of public transport (PT) services in developing countries is a challenging task due to a lack of reliable data and formal guidelines. The aim of this study was to develop a framework addressing these data limitations and quantify PT performance using output‐oriented Data Envelopment Analysis (DEA). The local bus service operation of Chattogram City Corporation area of Bangladesh was used as a case study. A performance assessment inventory was developed identifying the major stakeholders related to local bus service operations. The relative efficiencies of different bus routes (from users' and operators' perspectives) were estimated using the DEA model, which incorporated data from a semi‐structured questionnaire survey linked with the inventory. The PT authority also ranked all bus routes according to their degree of efficiency. Results indicated that relative efficiency scores in various routes varied according to the stakeholders' perspectives. A range of different parameters were considered when evaluating the performance of the service. The proposed inventory and framework would be useful for policymakers and urban planners in sequencing and prioritising different routes. This optimisation process would provide improved transport services to the general public.