In Lahore city, paratransit modes are extensively used daily by the local people either as the main mode or as a feeder mode to the main transit routes. Paratransit modes mainly include a wagon, Qingqi, and auto-rickshaw. From the last decade, Qingqi has become an essential part of the paratransit system because it can move in small streets and its service is very frequent and flexible. However, its presence is causing traffic management, environment, and safety problems in Lahore. The main objective is to evaluate passenger’s perceptions regarding service quality attributes of Qingqi service as well as its future prospects in Lahore. For this purpose, a questionnaire survey was conducted at different locations in Lahore and 346 samples were obtained. Most of the respondents believe that Qingqi is an uncomfortable, dangerous, and environmentally ill service. The results showed that the users are not satisfied with the existing service quality of Qingqi. Factor analysis technique resulted in three factors: social–environmental dimensions (SED), service quality dimensions (SQD), and spatial–congenial dimensions (SCD). It is found that the improved SQD, SED, and SCD are significant determinants of passenger’s future preferences with the Qingqi service. It is important to improve these dimensions of Qingqi service from the public perspective in order to meet their desired demands. These findings would help transport planners and decision makers in making it a sustainable mode of public transport.