Drivers are the dominant operating cost of a bus system, and they’re typically paid regardless of ridership. That means you have a minimum ridership per driver required to offset their cost.
Bus systems thus size the bus and route to ensure that minimum ridership. That, in turn, requires aggregating demand, i.e. forcing people to change the places and times of their transit to line up with the bus’s. Analogous to lift and drag, the more you force people to change their schedules, the more you lose potential demand to alternatives.
If you don’t have a driver, you can make your transports as big or small as you’d like. In rare cases, they’ll be bus sized. But most busses either aren’t consistently full or lose a lot of potential riders because their schedules and stops are inconvenient. A fleet of smaller vehicles sops up that demand without hauling around a bunch of dead mass off rush hour.