This study accesses the opportu ni ties and challenges of urban public transportation system in therncase of Anbessa city buses in Addis Ababa .The study was cond ucted on ACBSE since it is thernon ly publ ic transport service provider with a specific route of travel and governed by thernstate.The study has la llowed a case study app roach so as to get detail ed and diverse informationrnon the enterprise. 80th primary and secondary so urces were used in gathering data for the study.rnSources of primary data incl udcs Qucstionnairc for Anbessa city buses usc rs , Semi-structurcdrninte rvicw with oflic ials of ACBSE and AATA , Focus Group Discussion and personalrnobservat ion .Seeondary data so urces were published and un publi shed materials, journals, art iclesrnand bulletin prepared by ACBSE and other concerned bodies. Besides the study employedrnsystematic and random sampling methods to se lect the number of ro utes and sample respondentsrn(use rs) from each se lected ro utes, respecti vely. Purposive sampling was a lso used to se lect keyrninformants for discussion while conducting inte rview and FGD .The study resu lts indicate thatrnrole connict in the enterpri se, di sposal of scrap ve hicles and obsolete spare parts, high staffrnturnover , low Ileet re liabil ity, poor in frastructure and fac ili ties , lack of public transport pol icy ,rnlack of appro priate regulation and enfo rcement ,over loading of buses beyond its capacity andrnlong duration o f buses at the garage due to shortage of spare parts were the major chall enges thatrnhinder smooth ii.metioning of the enterprise in delivering publi c transport serv ices in the city.rnEven if there were constra ints related to the above mentioned challenges, Anbessa has also somernopportuni ties in public transportation system. Some of th e opportu nities were on passengersrntransported , transport cost , congestion , road sa fety, environmental pollution , bus network andrnit also provides the fo llowing services to thc society: contract transport service , adverti sement ,rnmobil e crane service, schoo l bus se rvice and techni cal services. I' ina ll y, based on the res ults ofrnthe study the enterpri se should improve the level services by so lving the above mentionedrnproblems in colla bo ration with the government and other concern ed bodies. Furthermore, thernGovernment should give great attention to the enterpri se to improve publ ic transport services inrnthe city especially by ta king advantages of the opportuniti es that mentioned in the above.