However, managing many small-scale routes led to the financial difficulties for the company, from around 1955, many routes were sold to Keihan Electric Railway, which was planning to extend their business in the Mt. Hiei area.
しかし小規模な路線が多く経営的には苦しく、1955年（昭和30年）頃から比叡山方面への進出をもくろむ京阪電気鉄道の傘下となっていった。