City circular services are a novel idea introduced in Trivandrum city, which had a flexible service with fixed travel costs irrespective of the travel distance. This new initiation had created a significant impact on auto-rickshaw ridership (Three wheeled motorized para-transit), which plays a major role in carrying urban passenger transportation. This study aims to develop a modal shift model for para-transit users to switch to the city circle service and to identify the influence of this new service on the mode choice behaviour of people. A questionnaire survey was conducted among 100 city circle users in Trivandrum city. The data collected were processed by SPSS software to develop a binary logit model for two different modes (city circle and para-transit). Among the parameters tested travel time, travel cost and trip purpose were the significant parameters affecting the mode shift. Travel time has a negative impact on the mode shift, with the increase in travel time due to circulating routes the tendency to use city circle service decreases. The result of this analysis shows that the city circle service had created a consequential influence on the demand for para-transit in Trivandrum city.