Taxis could be forced off the road as a result of the merger of two of Dundee’s largest taxi firms, according to worried cabbies.

A leading taxi drivers’ union rep also said it might also mean that the local authority would be forced to provide more taxi ranks in the city.

It was revealed yesterday that City Cabs 505050 and Tele Taxis are to join forces with immediate effect, creating Dundee’s largest taxi company.

But it’s causing concern among private hire taxi drivers who fear it will create a monopoly and put them out of work.

In the short term, the merger will result in the loss of 12 office jobs, but drivers fear that in the longer term it will force other drivers, who don’t work for the new company, off the road.

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One private hire driver told the Tele: “This will create a huge company working out of one office. It will have one phone number so when people phone for a cab they will have more taxis to offer passengers.

“This in turn will result in private taxi drivers struggling to get fares out on the streets.”

Chris Elder, taxi driver rep for Unite, said: “We already have concerns that there’s not enough work for all the taxi drivers in Dundee.

“This will create a monopoly which could mean that private hire guys are forced off the road because they can’t pick up the fares.

“The union will be going to the council to ask them to provide more ranks.

“Surely they see the sense of providing them rather than having taxi drivers cruising round and round the city looking for work and obviously adding to the air pollution concerns.

“Not all taxis currently are electric. I also hope that there is fair compensation for the office staff who are to lose their jobs.”

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City Cabs director Jimmy Marr said he had already secured employment for six of the staff and is working on finding work for the rest within his businesses.

In a joint statement released yesterday, management said: “The directors of both firms are pleased to announce the merger to create Dundee’s largest taxi company.

“The merger takes place with immediate effect and will provide an enhanced level of taxi services to the people of Dundee using state of the art technology.”