Mosgiel Coach Services has sold its public Dunedin routes to Ritchies and is now focused solely on school and charter operations.
Owner Bob Mitchell said the public daily services between Concord and the University of Otago were taken over by Ritchies on July 15.
Mosgiel Coach Services sold its two buses used on the routes to Ritchies, which also hired the routes' three bus drivers, Mr Mitchell said.
Reducing his business was not a result of the economy, he said.
''There's no drama attached to it. It's just a change of circumstance for us. We've just gone back to school and charter services,'' he said.
Mr Mitchell had held the Otago Regional Council contracts for the Concord to university services since July 2011.
Ritchies Otago regional manager Malcolm Budd said the purchase was part of the company's plan to grow its business in Dunedin.
''We want to be more involved in urban services. This gives us 12 urban buses operating in Dunedin,'' he said.
