At least 120 jobs could be on the line following a New Zealand Transport Agency decision to switch suppliers for driving tests.
Vehicle Testing New Zealand (VTNZ) will take over as the sole provider of the service from New Zealand Driver Licensing Limited - which has held the role for 16 years - in May next year.
It will carry out tests for car, motorcycle and heavy vehicle licences for an initial five-year period.
VTNZ customers can already apply for or renew a driver's licence at 25 of 82 stations nationwide.
Transport Agency group manager, access and use, Celia Patrick said it put the contract to tender earlier this year, with the aim of improving the experience for drivers.
The procurement process had been robust, she said.
"VTNZ are offering some improvements on the services and on the timeframes that they're available to provide testing.
"I think the process has brought forward some very robust and strong customer service ideas."
VTNZ would need to bring in trained people to do the tests, and they could potentially be from the company which lost of the contract, Ms Patrick said.
She said the level of skill and competencies required to pass practical tests would not be changing.
All up 127 jobs were affected and VTNZ chief executive Mike Walsh told Checkpoint it expected to take on a good number.
"But I can't say we're going to take on each and every one of them but I assume that they will be taking on the majority of them," he said.