Like most interurbans, yes in part, side-of-the-road in part, and definitely the streets in all towns.
Note that the interurban from South Bend to Elkhart was also a competitor with the South Shore from South Bend east to (if memory is correct from reading) Gary.
I doubt that schedules were coordinate for a smooth connection between the two interurbans in South Band, but there would probably be several times a day when the connection was good.
There was some cooperation. The Indiana Railroad's "High Speeds" of 1931 that were built by Pullman were hauled by the South Shore to South Bend, and then ran on their own power to Elkhart, then over the Winona to the connection with the Indiana (Peru?). At the time, the Indiana, like the South Shore, was an Insull operation.
