The annual cost of Sheffield's home-to-school travel service for children and young people with special educational needs and disabilities is forecast to reach around £27 million.
Sheffield City Council says the current system is no longer financially sustainable.
Around 1,165 children and young people currently use taxis for school transport.
The council is looking at potential alternatives including personal travel budgets, more shared transport and expanded independent travel training.
The challenge will be reducing costs while making sure children who genuinely need specialist transport can still get to school safely and reliably.
Source information
Source: Sheffield City Council