And yes, the drivers would coordinate. (I've sometimes seen it done with a brief honk for attention followed by a hand wave.)
[1]: [A self-coördinating bus route to resist bus bunching](https://doi.org/10.1016%2Fj.trb.2011.11.001)
[2]: [NAU’s new bus system makes for shorter wait times for riders](https://news.nau.edu/nau-bus-schedules/)
Looking at the second link, it seems they implement it by having the buses pause at certain points. Does it do that with riders onboard? That seems like it could be a deterioration in experience for those riders that are on the bus pausing.
But otherwise, they have a bunch of optimizations to spread the pauses out so they aren't too jarring. They also display the timer prominently so that riders are aware of what's going on.
In practice, riders seem happy with the tradeoff, since it has resulted in overall lower times to get from point A to point B.