The 44 bus between campus and town will be scrapped in December, according to Unibus.
The company behind the popular busses – the first ever to run on an around the clock timetable in York – said competing with the First Bus 66 route had “made life very difficult for us.”
Transdev, which runs Unibus, said “knowing when to call it a day has been one of the toughest decisions we've ever had to make.”
Unibus lost their bid to the University transport contract to First Bus last year but decided to “go it alone and without their financial support.”
In a hard hitting statement Unibus said there were “lots of other buses running along the route” and other businesses are “copying what we do” in providing a quick route to and from campus.
The company boasts the friendliest drivers as voted by students, USB ports on seats, and free WiFi. Unfortunately, Unibus says, these innovations weren't enough to turn a profit. "Sadly, no business can keep on running without making any money."
Halifax college tutor Josh Salisbury told York Vision: "I used Unibus all the time and it's really sad to see it go – they had the friendliest drivers! I think it's a real shame that the university chose to award their contract to First instead of Transdev, and we're now seeing the results of that decision."
University registrar and secretary David Duncan said he was "disappointed that Transdev are withdrawing the Unibus service but it is a commercial decision for them."
He added: "The University has a partnership with First for the 66 service and we will be working with them and YUSU to explore ways to minimise the impact of the Unibus withdrawal and the consequential reduced service to the City Centre."
The Unibus statement adds: "We'll continue to run the section of the 44 between Acomb and the city, which we operate under contract to the City of York Council – although it will no longer be called Unibus."