Minicab company Addison Lee, which urged its drivers to use bus lanes, has lost its Government contract, it was announced today.
Due to expire next Monday, the contract was with the Department for Work and Pensions but covered use by a number of Whitehall departments.
Earlier this month the company offered to pay for fines if its drivers used bus lanes in London.
Yesterday, after a High Court application by Transport for London, Addison Lee was instructed not to repeat the offer to pay fines or to encourage drivers to use bus lanes.
Today, the Government said the Addison Lee contract would not be renewed.
A Cabinet Office spokesman said: "The only existing cross-Government contract with Addison Lee will expire at the end of this month and is not being renewed. The contract has come to its natural end.
"Departments are using taxis less and reducing travel expenditure, which means we no longer need this type of contract."