A fleet of 12 motorised rickshaws that were launched in the Sussex city of Brighton and Hove two years ago are to be taken off the roads for good.
TucTuc Ltd director Dominic Ponniah said they had become impossible to run due to "archaic legislation".
He said the system where the tuk-tuks had to run to a timetable had proved to be too rigid for the company.
"We have decided to resign our licence as the current situation is just not workable," he said.
"We have really pushed for new legislation to be put in place to accommodate alternative types of vehicles."
He added: "There is obviously a market for them, but they can't be licensed in the appropriate way."
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