1st Choice has been launched by a team of former drivers and staff of Diamond Cars which joined forces with other taxi firm Go Carz last month.
1st Choice, which has got about 40 drivers, will be based at Athena House in Donnington.
Adrian Picken has helped set up the new firm after working for Diamond Cars for nearly 30 years.
He said: "We are trying to run a more traditional, personal taxi service as a lot of people still like to phone and speak to someone rather than just rely on an app.
"We have got about 40 drivers and a full complement of office staff who have all come from Diamond Cars.
"We are just operating in Telford for the time being as we establish ourselves.
"All Covid measures required by the council have been adhered to.
"We set up a Facebook page a couple of weeks ago and have had some really nice comments. The response has been fantastic."
To contact 1st Choice call 01952 505050 or find the business on Facebook.