Meanwhile, competitors such as Citybus had successfully lured passengers from CMB's franchised routes to their own residential routes. The establishment of route 37R as a residential route by Citybus illustrates this fact. The service provided more comfortable seats, air-conditioned fleet, and a more direct route (via Aberdeen Tunnel) from Chi Fu Fa Yuen to Central. Citybus was able to compete against CMB by charging only the fare of non-air-conditioned, uncomfortable and indirect CMB counterparts like routes 40 and 37 (which took Pok Fu Lam Road instead). The residential route was later converted into a franchise route, 37M, that still continued to be operated by Citybus.