Brought in about a month ago, the service links the Edgar Centre, South Dunedin, the University of Otago and Dunedin Hospital.
It runs half-hourly during peak times and hourly off-peak, from 8am to 8pm, running from Albany St to the Edgar Centre via Ward St and Portsmouth Dr.
Council director policy and resource planning Fraser McRae said daily passenger numbers during the week were still low, but Saturdays were proving to be very popular.
In the first week, 32 people used the service, the second 149, including 94 on Saturday, the third week 118 and the fourth 230, including 144 on Saturday.
The bus was now more identifiable, having recently been painted bright red, and had the stops marked along its side under a sponsorship deal with The Warehouse.
He also hoped that once students returned to town, patronage would increase.
