The Line Six shuttle bus was supposed to start Monday and offer a crowdfunded alternative to the TTC's jam-packed 504 King streetcar.
But the project has stalled, says co-founder Taylor Scollon.
"After consulting with legal counsel we decided to suspend the Liberty Village service," Scollon said.
The bus had a trial run last fall but organizers say a permanent service might violate city transit rules. They say investors will have their money refunded.
"It was definitely a difficult decision for us. I'm disappointed but I think it would be irresponsible to move ahead," Scollon said.
The TTC admits more service is needed. Bigger and more modern streetcars are planned to arrive on King Street in 2016.
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