Greyhound Canada says they are ending passenger bus and freight services in Saskatchewan, Alberta and Manitoba and cancelling all but one route in B.C.
The move will put 415 people out of work and will impact 2 million consumers.
Services will run until the end of October.
“This decision is regretful and we sympathize with the fact that many small towns are going to lose service,” Greyhound Canada senior vice-president Stuart Kendrick said in an interview with The Canadian Press.
“But simply put, the issue that we have seen is the routes in rural parts of Canada -- specifically Western Canada -- are just not sustainable anymore.”
The company says they have seen a 41 per cent decline in ridership since 2010, citing competition from national and inter-regional passenger transportation services, the growth of low cost airlines, regulatory constraints and the continued growth of car ownership.
Kendrick says Greyhound Canada will continue to petition Ottawa to help fund transportation in northern communities.
"There was a commitment to look at our issue, they're well aware of it. It shouldn't come as a surprise that we've had problems but there was no funding commitment at that time," he said.
The move comes just over a year after the Saskatchewan Transportation Company cancelled bus service in the province.
