The US firm uses a smartphone app to connect passengers with vehicles, which could cut fares by about a third.

Uber confirmed yesterday it has applied for a licence to operate in Glasgow as well as having applied for one in Edinburgh, and is recruiting staff.

However, the company was unable to say when the services would start.

One of Edinburgh’s two largest taxi firms said it was not concerned by the move but an expert said operators could lose up to 40 per cent of their business.

The news comes hard on the heels of the launch of a black cab booking app, GetTaxi, in Edinburgh.

Uber, which already operates in London, Birmingham, Leeds and Manchester, has sparked fears in other countries about the lack of regulation of drivers and vehicles.

It switched to licensed drivers in Germany after being banned in Berlin and was temporarily banned in New Delhi after a woman accused a driver in the Indian capital of rape.

Cabbies brought central London to a standstill last summer over the way Uber fares are calculated.

However, Uber’s UK regional general manager, Jo Bertram, said: “All drivers have the same licences as private hire drivers, with an enhanced criminal records check and medical check.”

She said passengers could use the Uber app to see how close the nearest vehicle was, book a journey and pay the fare.

Ms Bertram declined to give rates but said Uber would aim to provide the “best value for money”.

She said around three staff would initially be recruited in Glasgow and Edinburgh. Uber employs up to 50 in London.

Aberdeen could be a future target for Uber, she suggested, but said it would take expansion “one step at a time”.

James Cooper, professor of urban transport regulation at the University of Missouri-St Louis, urged passengers to be cautious. Prof Cooper, who is on sabbatical from Edinburgh Napier University, said: “If a vehicle is licensed correctly, they have no problems – but how do passengers know?”

He said fares could be 30 per cent cheaper and existing operators stood to lose 20-40 per cent of their business.

Central Taxis, Edinburgh’s biggest black cab firm along with City Cabs, said the capital already had good taxi provision.

Director Tony Kenmuir said: “We cannot ignore an organisation like Uber when it is making headlines all over the world.

“However, we have reviewed the market in Edinburgh and the public is very well served by the taxi trade. There is a relatively high number of taxis for the size of population, and one of the newest fleets in the UK.”

Mr Kenmuir added: “I do not see a clear cut market for Uber here as standards are so high and vehicles are readily available.”

Glasgow Taxis, the city’s largest operator, urged passengers to stick with established operators.

Vice-chair Stephen Flynn said: “When booking a taxi, the only way to ensure a fully licensed and disclosed vehicle and driver is to use a recognised company.

“Third-party systems can’t guarantee the same level of regulation and, when passenger safety should be absolutely paramount, that is concerning.”

An Edinburgh City Council spokeswoman said: “We can confirm Uber has lodged an application for a booking office in central Edinburgh. The applicant and any objectors will have the chance to present their case before a decision is made.”

A Glasgow City Council spokesman said: “We can confirm an application for a taxi booking office has been received [and] will be considered in due course.”

Up to 20 taxis will take part in a march aimed at demonstrating the strength of feeling against council plans to slash speed limits on 80 per cent of city streets.

Protesters were due to gather from 9.30am at Dynamic Earth, before walking the length of the Old Town down Cowgate, through the Grassmarket and ending up at Palmerston Place.

Organisers say upwards of 100 people could join the march, which will see the Pleasance and St Mary’s Street closed at Holyrood Road, and rolling road closures at Candlemaker Row and along Grassmarket.

The demo promises to be a noisy affair, with cabs honking their horns and a flatbed truck kitted out with a sound system blaring the protesters’ anti-20mph message.

• Edinburgh councillors approve 20mph plans

Businessman Grant McCusker, who has set up the Say No to 20mph campaign, said he had received pledges of support from a number of other trades using the road, as well as taxis.

He said: “There are lots of streets like Leith Walk and St John’s Road where during the day you can never get above 20mph anyway.

“They’re saying it will reduce accidents and pollution, but actually it will cause congestion which will increase pollution and cause accidents because people will be getting irate.

“Looking at other cities like Bristol where this is already in place, all those negative effects have actually happened.

“What will happen in Edinburgh is they will spend £2.5 million just to put up a few road signs – although given what happened with the trams, it will probably be more – and then two or three years down the line, they’ll say it isn’t working and take them down again.

“Why waste the money? Why not do their homework first?”

• Edinburgh set to be 20mph city

“The cabs will all be honking their horns, so hopefully it will generate some noise.”

Laura Lucas, secretary of the Edinburgh Taxi Association, is helping to spread the word among cabbies.

She said: “Driving at 20mph on a night shift at 3am, when you’ve picked people up after a night out to drive them home maybe two or three miles, it just isn’t going to work.

“Folk don’t want to hang about at that time in the morning.

“It’s going to have a knock-on effect on our work. The vehicles aren’t built to travel at 20mph. People have learnt to drive at 30mph. It’s going to be a case of watching your dashboard rather than the road.

“We’re going to try and get as many drivers along to support, either in their cabs or on foot.”

Transport leader Councillor Lesley Hinds said: “Repeated surveys over the past three years, including the consultation last autumn which drew nearly 3000 responses, demonstrate widespread support for slower speeds.”

Source: Edinburgh News