Compensation and work performance are closely related. Adequate and proper compensation would generally drive employees to work better which later could boost up their work performance. This paper is aim to analyze the effect of compensation toward work performance at online transportation companies in Indonesia. The companies’ policy on compensation as claimed by the emloyees have changed and made the employees uncomfortable. The research was conducted to 63 online transportation drivers. The primary data was used in this research. Questionnares were conducted to those online transportation drivers. This research used validity, reliability, regression analysis and t-test as part of research method. The result of the study showed that compesation effets the drivers’ work performance by 53%. The result of t-test, it has been proven that compensation significantly influence drivers’ work performance.