The company, a subsidiary of Wayfare (formerly Real Journeys) purchased Queenstown Water Taxis from previous operator Thunder Jet last year, rebranded and launched new pricing and timetables, to encourage residents to use it for public transport, on November 1, 2018.
However, Go Orange general manager Luke Taylor said the scheduled public services would be discontinued from February 29, 2020.
From December 1 the service would only operate from Queenstown Bay, Kelvin Heights (Bay View) and the Hilton Hotel.
Mr Taylor said he was "disappointed'' and "frustrated''.
Despite providing "absolute proof'' of the demand for a public ferry service, no subsidy had been forthcoming.
"We have been discussing with the public transport funders the fact that the ferry service isn't financially sustainable as a public transport option without support similar to that provided for public buses.
"Both the Queenstown Lakes District Council and NZ Transport Agency have indicated they'd support us if the Otago Regional Council (ORC) came to the party, but it's been months now and the ORC just won't engage.''
Mr Taylor said the company knew it was taking a commercial risk when it launched the service and to show the demand was there it had to set fares local residents would support.
Like Orbus' $2 fares, that required a level of subsidy to operate.
"Boats are not cheap to run.
"We're only asking for the same level of subsidy per person that the buses enjoy.
"We're a much smaller operation carrying fewer passengers, however, we ease the congestion on Frankton Road better than anyone - we're not even on the road or adding to its wear and tear,'' he said.
Queenstown Ferries cost $9 per trip, $15 return or $49 for a 10-trip concession - cheaper than the Auckland Harbour ferry, subsidised by the Auckland Regional Council.
If prices were increased on the Queenstown Ferries, "demand would plummet''.
Mr Taylor said the company had wanted to be part of a sustainable public transport network long-term.
"We gave it a year, but unless we hear back from ORC we cannot continue to operate at a loss.''
Once the ferry service ends, Queenstown Water Taxis - which Go Orange also owns - would continue to operate its service to and from the Hilton Hotel.
