Dunedin City Council transportation planning manager Sarah Connolly said staff had tried a variety of methods to deal with the scheme's problems, but had "run out of solutions".
Before it winds up next March, council staff will review the 155 on-street parks used by the scheme to decide what should replace them and identify any other changes that would make parking more convenient.
A report to yesterday's planning and environment committee recommended the council abandon the scheme from next March, when existing registrations expire.
Instead of continuing with the scheme, it should encourage tertiary and other large institutions to develop their own on-site schemes, the report from transportation planner Emerson Yeoman said.
It noted the council could promote ride-matching websites and staff would explore options with the Otago Regional Council for a student bus pass.
The scheme, which runs in Dunedin's tertiary sector, allows free on-street parking for drivers with one or more passengers.
The ride-share scheme, which has been in place since 2000, has 155 on-street parking spaces open to staff and students at the University of Otago and the Otago Polytechnic. People who wanted to use the system had to register, and were provided with tokens.
The objectives of the scheme included improved options for commuters, a reduced number of single-occupant vehicles, which helped reduce emissions and reduced parking pressure.
However, the scheme was subject to significant abuse, with 41% of users contravening the rules.
The council responded by making the scheme for students only, introducing a $50 fee and a $20 fee for replacement tokens, and reviewing the initiative.
But university and polytechnic staff, some of whom were angered when they were shut out of the scheme, and frustrated by the many empty parks they saw, wanted back in.
In April, 100 tokens were made available to staff, and in July, $30 tokens were made available for the final semester.
But the review showed a low occupancy of ride-share spaces: only a small reduction in single-occupant car trips; only 1.3% of staff or students were involved; and enforcement was difficult and expensive to achieve.
Enforcement was identified as one key problem. The other was "that it is ineffective in achieving its two primary objectives, namely sustainability and reduced parking pressure".
Mr Yeoman's report concluded the costs to amend the ride-share programme would "significantly outweigh" the initiative's benefits.
Cr Jinty MacTavish told the committee she had received many emails from people concerned about the issue.
The review had commented the scheme was not achieving its objectives, she said.
"I would love it to, but it's not."
Cr MacTavish said considering student bus passes was a "fantastic" idea.
Ms Connolly said a survey had shown most people who used the ride-share system were people who would ride-share anyway, or walk or take the bus.
The scheme had not cost a lot, with a budget of about $7000, and money returned from fines through enforcement.
Staff would "research thoroughly" what to do with the 155 parks, she said.
