Veezu, the parent company of Go Carz, is taking over Shrewsbury Taxis. Drivers from Shrewsbury Taxis were told via text message, and are now waiting to be contacted by Veezu to see if they will keep their jobs.
It comes after Go Carz merged with Comet Cars in Shrewsbury in 2018, bringing its fleet up to 210 in the town.
And last year, the firm bought Diamond Cars in Telford. That move meant the Telford Go Carz fleet increased to 650.
In the wake of that takeover, several former Diamond Cars drivers set up rival firm 1st Choice.
Adrian Picken, one of the drivers involved, said at the time: "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."
Shrewsbury Taxis insist their drivers have "good local knowledge".
On its website, the firm says: "We pride ourselves on providing local drivers with a good local knowledge of Shrewsbury to ensure your journey is completed efficiently and quickly and via the best possible route.
"Based in the heart of Shrewsbury, Shrewsbury Taxis provide a high quality, reliable and competitive private hire and taxi service to the local population as well as the thousands of visitors Shrewsbury welcomes every year."
Go Carz operates across the West Midlands. The firm says it "is committed to giving all passengers the highest quality service. We are constantly improving our technology to make your journey from the moment you book, till you arrive at your destination."
Shrewsbury Taxis and Veezu have been contacted for a comment on the takeover.