Rainbow City Taxis has bought city rival ComCabs in a major deal which grows the firm's fleet to almost 500 vehicles.
The merger, which is expected to be formally completed next week, was first reported by The Press and Journal.
Russell McLeod, the owner and managing director of Rainbow City Taxis, commented: "We have always been proud of our heritage, servicing the citizens and visitors of Aberdeen for over 42 years.
"We are excited by this acquisition which will increase Rainbow’s fleet to nearly 500 vehicles and underline our commitment to Aberdeen and the valued customers we serve and enables us to continue to represent."
ComCabs has had a presence in Aberdeen more than 70 years and also started a taxi training school in 2022.
The news comes as global private hire car giant Uber continues to work towards a full launch in Aberdeen, something which has been fiercely opposed by the city's taxi trade.