The problem is with volume of demand: Toronto runs into the issue of lack of demand for a lot of routes, and pretty much a government owned operator would tolerate 90% bus routes that aren't above break-even (as far as I remember, that's the number). It works in Hong Kong because you have all the modes competing against each other, and all modes compete with cost at the most ridiculous setup too!
For example: during business rush hour, crossing the harbour is always a major issue with traffic flow (with only 3 roadway tunnels crossing the island), you would expect that rail often is the way to go, but then there's the ferry operators (which is within walking distance of where subway/rail terminals are -which offer even cheaper and just as fast options for crossing over), bus operators which give discounts certain slightly off peak hours to encourage users to get off before the tunnel crossing and switch over, etc.