New taxi charges in Chippenham have driven a group of rebel drivers to set up their own company to undercut their rivals, sparking a bitter rivalry.

Wiltshire Council upped the maximum meter charges last month to help combat rising fuel and running costs, leading to many fares almost doubling.

A breakaway group of drivers, led by Martin D’Agostino, has now set up its own company, DCM, offering huge discounts and angering their competitors.

But more established taxi firms in the town say the company will not last.

Martin Smith, operations manager of Chippenham and Bath-based Abbey Taxis, said: “We have experienced companies trying this sort of thing in the past and they have come and gone. The sustainability of some deals just don’t stack up.”

Another manager of a rival company, who did not want to be named, said: “We don’t see DCM as a threat at all. We have all seen what has happened to other companies who have tried this tactic in Chippenham in the past. And where have they all gone now?”

Eight drivers, six of whom were Abbey Taxis employees, left to join DCM. Mr D’Agostino, 51, of Kingsley Road, who has been driving a taxi for 25 years, thinks his new firm can survive. He said: “Everyone has lost a lot of trade since the prices went up, especially in the early hours of the morning.

“People are choosing to walk rather than get a cab.

“Loads of members of the public have been complaining about the prices but our drivers are prepared to take the hit by offering big discounts in the week.

“But some of the companies in town are creating holy hell about us and seem like they want to start some great taxi war.”

The council controls the maximum price a taxi company can charge, which is shown on the meters in the front of the cab. Drivers and operators can choose to offer discounts on those prices as they see fit. The charges were put up on February 14 after a consultation with companies and were upheld by the licensing committee after objections from four drivers.

Some evening fares have nearly doubled in price, the price of a journey from Chippenham to Devizes has risen from just over £25 to nearly £50, said Mr D’Agostino.