Colectivo
Shared shuttle buses
These are called colectivo, as in the collective way to travel. Most depart when they’re full, rather than on a schedule. This is the cheapest and the most common way to travel. Most Peruvians travel by colectivo between cities and sometimes between regions.
The set-up
A colectivo usually has a driver and an assistant who collects the fare. It’s the assistant’s job to call out at stops the names of the places that the colectivo is going. You pay the assistant when you get off the colectivo. The price is usually posted inside the front windows. Assistants prefer exact change, since the driver is usually already rolling again while they’re trying to collect your fare.
Paraderos
In most cities, colectivos going to different directions leave from different “paraderos.” (locations) For example, colectivos in Cusco leaving for Pisac and Calca (the eastern side of the Sacred Valley) leave from Calle Puputi. Colectivos leaving for Urubamba and Ollantaytambo (the western side of the Sacred Valley) leave from Puente Grau. Busses have different paraderos from colectivos.
Busses can be safer in terms of having more professional drivers and driving more safely. If you are considering a trip that’s more than two hours, I would recommend looking for bus options, especially if you are traveling at night. If it’s a shorter, daytime trip, the colectivo is usually the way to go.