When approached by the Otago Daily Times yesterday, owner/operator Michael McIvor declined to comment but an advertisement in The Central Otago and Lakes District News last week announced the closure "with great regret".
Age Concern Otago executive officer Susan Davidson said she was "very disappointed to hear that" especially given the lack of transport options in the area.
Central Otago Grey Power secretary Jackie Goyen agreed with Ms Davidson and likened the service to a personal car for the elderly.
"It was once explained to me that the taxi service is like the car in garage for a lot of people and when you don't have that car, what do you do?
"There are certain members of our society that will really miss it but you can understand why it may not be viable."
Ms Davidson said Age Concern would look at what it could do for people in the future.
"But it's probably timely that people and community organisations have a discussion about the possibility of a volunteer service."
Michael and wife Jenny had run the service for about two years.
Before that, other taxi services had operated in the area.
Some owners of those services cited the emergence of courtesy coaches to and from pubs as factors in their stopping.
About seven years ago, community groups including Rotary and the then Citizens Advice Bureau combined to provide a temporary service.
