The aim of this study is to investigate the transportation service quality and its impact on staff’s satisfaction of the two selected Ethiopian higher education institutions Dilla and Wolayita Sodo Universities. To asses service quality of the transportation service and its impact on staff satisfaction the data were collected from 201 survey participants from both universities. The study employed both descriptive analysis and confirmatory factor analysis by using structural equation modeling. The multiple regressions as a basis for causal paths were used to test all hypotheses by controlling the demographic background of the respondents. Based on the empirical results all proposed service quality dimensions of transportation services reliability, convenience, security, empathy and comfort ability have direct positive impact on staff satisfaction with transportation services.