Taxi operator Uber has been granted a licence by Blackburn with Darwen Council to pick up passengers in the borough.

It came despite fears it could have a major effect on local licensed cab and private hire drivers working for taxi firms within the borough.

Earlier in the year Hackney Carriage drivers spoke out over concerns that out-of-town Uber drivers are working ‘on their patch’, with the ride-sharing app undercutting their prices.

There were also concerns about hundreds of drivers based in the borough who have been granted licences by Wolverhampton Council, many of whom drive for Uber, working across Blackburn with Darwen.

Since Uber's introduction in the UK, it has become common to see private hire vehicles working for the app-based ride-ordering service operating in a different borough to the one they are licensed in.

Now, drivers will be able to register with Uber to work under the Blackburn with Darwen licence.

Uber is the largest ride-sharing company worldwide with more than 150 million monthly active users and six million active drivers and couriers.

In order to drive on the Uber app, drivers need a private-hire licence from a council Uber is licensed by. All UK private-hire drivers need a licence from a licensing authority such as a council.

Blackburn with Darwen Council said a licence had been granted for five years from November 12.

Strategic director of environment and communities at Blackburn with Darwen Council, Martin Eden, said: "The licensing service has recently received an application for an operator's licence for private hire vehicles from Uber.

"The application has been considered fully and it has been approved. The council has issued Uber with a licence to operate private hire vehicles in Blackburn with Darwen for the next five years."

Rumours had been circulating among local taxi and private hire drivers about Uber looking to be licensed in the borough last month. Two weeks ago the council had said no application had been submitted.

One cab driver, who did not wish to be named, said: “This is going to have a major effect on local firms. You may find some smaller firms closing."

He also made claims passengers may be charged more for short journeys or face issues with guide dogs.