THE cashless taxi app Uber is set to launch in Newport today at 4pm, adding Newport to its UK city base.

While highly popular and easy to use, the system has caused controversy among taxi firms and drivers, who fear the digital fares will force them out of business.

Newport will become the second Welsh city after Cardiff to welcome Uber to its streets, adding to more than 20 cities across the UK where it is in operation.

“We’re really excited to be launching our second city in Wales this Friday,” said Fouzan Ali, the general manager for Uber in Wales.

“Already tens of thousands of people have used the Uber app in Cardiff and now we’re able to offer the same safe, convenient and affordable experience in Newport."

The app operates by allowing users to book a licensed private hire driver at the touch of a button through the smartphone app.

Passengers pay for their fare using the app, which takes the money from the rider’s registered bank card.

All drivers using the Uber app in the UK are licensed for private hire and Newport drivers will have a licence from Newport City Council.

This includes an enhanced disclosure and barring service (DBS) check – which is the same process black cab drivers, teachers and care workers go through.

“This launch also means that locally licensed private-hire drivers can now apply to use the Uber app and become their own boss - choosing when and where they want to work,” he added.

With the app, an example journey from Newport Station to the Royal Gwent Hospital would cost around £3.50.

Taxi drivers have raised their concerns over the app, with some fearing it will force them out of the market.

Previously, David Bryant from Newport’s Dragon Taxis said: “It’s the guys on the road, the taxi drivers, who are going to suffer. There’s no taxi firms making money at the moment.

“I’m nearly 59 years old and I’m having to work 10 hours a day because fares are so low.”

Other Newport firms are less concerned about the arrival of Uber.

Servu’s Dennis Griffiths said: “There’s not a lot we can do about it. It’s just a bit more competition.

“They’re going into a lot of cities –- it’s just one of those things we’ve got to put up with. Everyone is undercutting each other.”

Shahad Ali from Chow Taxis added: “We’re really not bothered about it. We’ll just have to step up our game a bit, but our customers are loyal.”

The firm, which started in San Francisco in 2011, was granted a licence by Newport City Council in August.