Threat from private hires drives black cab firms' talks on merger

Central Taxis and City Cabs, which between them have around 700 vehicles, are in early discussions, with the threat from the city's minicab trade and rival firm ComCabs said to be looming.

Members of City Cabs, which is run as a co-operative, will meet next week to discuss setting up a feasibility study.

The firm today said any merger was still "a long way off," but rumours that the two firms are set to join forces are rife.

Les McVey, company secretary for City Cabs, denied that the merger was being discussed.

He said: "We've set up a meeting with members for next week to discuss a feasibility study, but a merger is a long way off.

"There are a variety of reasons for it, but private hire firms have been here for several years. The two companies already work together at the airport, so it makes sense (to look into a merger]."

Last year, the city's black cab firms described a decision by the city council to allow minicabs the right to charge lower fares as a "recipe for disaster".

The move raised objections from Central Taxis and City Cabs, who argued it would lead to "confusion" among passengers.

The city's biggest private hire firm, Edinburgh City Private Hire, won the right to change its meters and undercut its competitors by up to 30 per cent following the ruling by licensing chiefs.

Kevin Woodburn, a director of Edinburgh City Private Hire and the chairman of the Edinburgh Private Hire Association, said the public was "sick of being charged extortionate fares" by Edinburgh's black cab firms.

He said: "I know the council is considering another tariff increase, so we could end up 35-40 per cent cheaper. If the black cab firms see us as a threat and think the best way to resolve that is to merge, then that's up to them."

Councillor Colin Keir, who chairs the council's regulatory committee overseeing the taxi trade, said he was aware of early discussions between the two firms, but said it was not a concern.