United Taxis owner and operator Bill Overton has merged his company with City Taxis, and will now work alongside his former competitor Merv Whiston.
Mr Overton (71) said his health was failing and it was time for him to pull back from fulltime work.
He has been appointed director of City United Taxis.
''Hopefully, this will make life a bit easier,'' he said.
Mr Overton had driven taxis in Dunedin for 42 years and became involved with United Taxis in the 1990s.
He specialised in providing transport for mobility-impaired passengers and had a fleet of ''total mobility vehicles''.
Mr Whiston, chairman of City Taxis, said the addition of those vehicles strengthened the new company's combined fleet of about 60 vehicles.
''It fitted our niche market,'' he said.
City Taxis had operated in Dunedin for about 60 years and it made ''excellent business sense'' to integrate with United Taxis, in what was a competitive market during hard economic times, Mr Whiston said.
Most staff had been retained in the merger, under which all operations were based at the existing City Taxis depot in Macandrew Rd.
The company will expand into adjacent office space, and Mr Overton will end his lease of the United Taxis depot in Bridgman St.
Both companies' existing phone numbers directed customers to the combined dispatch team.
''We are pretty thrilled with the merger all round. It will be wonderful for Dunedin because we can provide a better and faster service,'' Mr Whiston said.
