Nice solution, only 1 problem: You understand technology but not humans. This idea is not novel, people have thought and tried to implement this for ages. The problem boils down to 'incentive' or "what is there in it for me"?
In case of UBER/OLA the drivers are incentivised to perform better but in case of state transport buses, the drivers niether have get any incentives for doing well by adhering to the timetable and apps, nor served punishment for doing bad. They have their fixed government salaries credited every month even if they drive bad, and if they are reprimanded, they can always park the buses and start a strike.
Remember, Remember: What works in New York/London won’t work in New Delhi/Lucknow! the market is different, the socio-economic-political situation is different.
And yes its a Ops heavy problem that cannot be solved just by a nice UX app. Their will be cost of fitting GPS devices, training drivers and also safeguarding from getting stolen and maintenance and monitoring.
