PRIVATE hire company, City Cars whose office is in Eastgate Street, has been granted permission to stay put.
The firm runs from a former hairdressing shop with parking facilities at Julian Rogers Autoservices in Kings Barton Street.
City Cars, which has one full-time and two part-time drivers, has a contract to park their cars there when they are not in use.
However nearby residents raised concerns about the level of noise, traffic and parking.
At Gloucester City Council’s planning committee on Tuesday, Neil Mackie, who spoke on behalf of Andy Cars, said: “This application is a farce. We encourage competition but this is about the residents of Barton Street. The properties here are a fire risk because they are old.
“Many elderly residents live here and access is needed to emergency vehicles at all times.
“These people who are living in these houses will have their properties devalued because of the traffic coming up and down their roads.”
Azam Choudhry, who owns City Cars and submitted the application to Gloucester City Council, also spoke at the meeting.
He said: “The shop was empty for a long time and I needed an office so I took the space and I rent the car spaces from Julian.
“I am serving the community and picking up customers who need a taxi.
“My cars do not make any noise and whoever is making it, it is not my problem. I have asked my drivers not to park on yellow lines.”
Earlier this year, a one-way system was introduced in Eastgate Street during the evenings of Fridays and Saturdays.