Strætó also manages rural coach services for most of the country in cooperation with the Icelandic Road Administration.

Strætó bs was created in its current form in 2001 through the merger of preexisting regional bus companies, tracing its roots to the year 1931.

is owned by the six municipalities in the Capital Region: Reykjavík, Kópavogur, Hafnarfjörður, Garðabær, Mosfellsbær and Seltjarnarnes.

Night buses only operate in one direction: from the city centre to the suburbs on an approximately hourly basis.

There is a standard flat fare for a single ticket within the capital region of Reykjavík, allowing unlimited transfers for 75 minutes from activation.

[6] An open-loop account based electronic fare payment system called KLAPP was introduced in 2021.

A reusable Klapp smartcard can be purchased and registered, and single, season and concessionary tickets can be loaded onto the card.

Only a full single adult fare payment is possible with credit and debit cards, group and discounted tickets must be purchased separately or through the Klapp app/card.

[9] Alternatively, a single fare can be paid directly to the driver in cash, with no change being given, and a paper receipt is issued as a ticket.

[10] Season tickets for long distance journeys can be purchased for a specific region for a period of 1, 3 or 12 months and are issued as a separate card, with concessionary fares available.

in its current form was created on 1 July 2001 by the merger of SVR (Strætisvagnar Reykjavíkur) and AV (Almenningsvagnar).

Unfortunately, the introduction of the new network caused a great deal of controversy and confusion as people (especially senior citizens, who make up a large percentage of users) had gotten used to the old routes.

Additionally, some smaller neighbourhoods were entirely cut out of the routes, resulting in long walks to the nearest bus station.

Also, the route of line 22 was changed for the evenings: It now runs via Álfaskleið instead of serving Skútuhraun/Slökkviðstöð back to Fjörður terminal, so an hourly service in central Hafnarfjörður can be provided.

The first regular night bus service in Reykjavík started in January 2018 on a year-long trial basis.

[11] The service consisted of six routes (101, 102, 103, 105, 106, and 111) which started at the central bus station Hlemmur running out to the suburbs.

[11] In October 2018 Strætó announced that night bus usage had been too low in the preceding ten months,[12] with only routes 101 and 106 having shown an acceptable level of ridership during that time.

[12] Route 111 was discontinued in January 2019 while the remaining five were kept on until 31 March 2020 when all night buses in Reykjavík were suspended until further notice as a result of the COVID-19 pandemic.

[15] As a result of urban redevelopment and Borgarlína construction, the main city centre terminal at Hlemmur was closed in 2024.