Recently, urban traffic has become worse and worse in Taipei city. The solution has to depend on universalization of public transportation. But, we need first a performance method for evaluating transportation systems. This paper focuses on establishíng an objective and easier evaluation process. The selection of performance evaluation included the weight of indices, by using the AHP method and the priority rankings of all bus systems according to the concept of fuzzy MADM. In this paper the hierarchical structure of bus performance evaluation indices was constructed by considering the three aspects of supply side(bus firms), demand side(passengers) and supervisory side (policy). Then sixteen evaluation indices were selected in this hierarchical structure. We made use of the hierarchy concepts of the AHP method and its eigenvector from decision groups of bus operators, passengers, government authorities and scholar experts to caculate and obtain the weight of each indicator. Finally, the priority rankings of all bus systems-TOPSIS, were ranked by applying the outranking of fuzzy MADM. Finally, we illustrated and ranked ten bus firms in Taipei city by using the evaluation process established here. It was shown that simplification of the complexity of fuzzy app1ication to bus system evaluation was more suited to the characteristics of these types of problems.