Three school bus operators and about 40 people were on the waterfront at Lake Rotorua on Friday in a protest over the tendering process by the Ministry of Education.
Organiser Kevin Smith claims 100 operators have lost their contracts for school runs and fear safety and quality standards will fall under new companies.
He says some have been driving school buses for up to 30 years and are being forced to wind down their businesses.
Four operators from Rotorua, Taupo and Reporoa in the Bay of Plenty have pooled funds and engaged the law firm Russell McVeigh to review the tendering process.
They claim local drivers who know the roads better offer a safer service.
The ministry says it has a responsibility to run the best possible service at the best price and the safety of pupils is the number one priority.
