The Daily Stat from Harvard Business Review

June 11, 2015 Why You Shouldn’t Wish Your Bus Driver Were Paid Per Rider Would bus passengers benefit from a system in which drivers were paid per rider? Prior to 2007, some bus drivers in Santiago, Chile, were compensated per passenger, while others got a fixed wage, allowing for a comparison, says a team led by Ryan M. Johnson. Compared with the fixed-wage system, per-passenger compensation led to 13% shorter passenger wait times via reduced bunching of buses. However, it also led to 67% more accidents per kilometer driven, because of more-aggressive driving. SOURCE: “The War for the Fare”: How Driver Compensation Affects Bus System Performance

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