At least it reduces the cost of collecting fares.
It also encourages the operators to be on time, instead of waiting for the bus to be full. In my city, the driver was willing to wait for one hour, to make sure the bus is full, when the walking time is just 15 minutes.
You may think it is impossible, but it actually happened to me personally at Kota Kinabalu, Malaysia.
As to the high cost of subsidies of public transportation, just spend a little bit more.
As to where the extra income come from, just tax the car drivers more. If they realise that it is for the good of car drivers, they will support it for sure.
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