Member for Bega Andrew Constance is under fire for low usage of the Bega Valley's Flexibus On Demand service and is facing accusations it is costing taxpayers up to $500 each trip.
But the service's operator Sapphire Coast Buslines said the situation is not as dire as has been reported.
The busline's managing director Jamie Klemm said the Eden and Candelo services combined had about 16 to 19 passengers using them per month, which she admitted was "very low".
In fact usage was so low in April she spoke to Australian Community Media about her concerns these trial services would be lost if more passengers did not participate.
However, she said the Bega and Merimbula services had been "going great guns" since they launched, getting about 15 to 20 passengers per day.
She said over July there were 216 passengers that used the four services and 150 people had the downloaded the mobile phone app used to book the service.
"I believe Bega and Merimbula will become a success story for NSW," Ms Klemm said.
"Eden and Candelo use existing buses. They haven't been well-patronised, but there hasn't been a huge cost in relation to that.
"I do think the government will cancel that service, and I've tried to get it up and running but it's just not working."
The two small buses that run to Bega and Merimbula are leased and the NSW government funds the service.
Both Nine News and the Rail, Tram and Bus Union (RTBU) NSW claimed Flexibus could cost taxpayers $500 per trip, with tram and bus division secretary of the RTBU David Babineau saying the state government needed to release the contract details of the on-demand service.
"These on-demand bus services are the greatest waste of taxpayer money imaginable," Mr Babineau said.
"The lack of uptake, despite the government's efforts to get people onto these services is a clear sign that commuters want adequate investment into public bus services and not unpredictable government subsidised taxis."
However, Ms Klemm said the estimate of $500 per trip was incorrect, and that it would be "ridiculous" if the cost of the software developed for the service's app was included by those calculating this estimate.