Reducing car use is a central topic in transport policy and research. One is the use of Mass Transport which services the public at a cheaper operating cost, with less amount of fuel, more safely and environmentally friendly as compared to the private cars, small and collective taxicabs. Therefore, an investigation of key influential service factors is of great significance to optimize transit service from a customer perspective, resulting in policies that could be formulated to influence traveler behavior and attract more transit users. This research aims to study on the assessment of the demand for use of the High Capacity Public Bus for Bahir Dar City. 540 questionnaires from the three major corridor routes were conducted at their origin and destination places using random sampling. After collecting, ¾ th of the data were used in the calibration of the binomial logit model and mixed effect model for revealed preference survey and stated preference survey respectively. The 1/4th of the collected data were used for validation purpose. The calibrated binomial logit model result shows the difference in out of vehicle travel times, in vehicle travel time, the occupation categories such as Selfemployed and Private. Full-time employed, and the routes used were obtained as a significant variable in the revealed preference survey. The calibrated mixed effect model for stated preference survey shows the difference of travel time, a difference of travel cost and difference of service frequency between bus and taxi were a significant variable that influences the use of demand in comparison with the Taxi. The socioeconomic variable such as the category looking after the home, retired people from occupation and the respondents who have revealed preference choice of public service and the public bus has a positive demand to use the High Capacity Public Buses. The models are validated to be capable of predicting 69 % and 64.4% of the preference of trip makers among the available revealed and stated modes. The major retarding factors in use of public bus were identified as “insufficient number of buses in the city”, “low frequency of bus services”, “having less shelters in bus stops”, “unavailability of seats in buses” and “large waiting time for buses at bus stops” even if there is a good result in “transport price affordability” and in “behaving well of drivers and conductors”. The most identified factors which affect mode choice were “Travel time”, “Station safety & security”, “Vehicle inside Safety and security from illegal actions”, “Seat availability” and “cost of travel or fare” which were the five most important affecting factors for respondents among all factors respectively.