Hundreds of pupils could be stranded after taxi drivers threatened to pull out of the school run.
Brighton and Hove taxi drivers are unhappy with the city council for awarding contracts for home-to-school travel to firms licensed by other local authorities.
The GMB union, which represents cabbies, says Brighton and Hove firms are at a disadvantage when tendering for contracts to transport disabled and vulnerable children because their drivers have to abide by stricter rules to get licences.
Mick Hildreth [otherwise known as Brighton Breezy], local branch secretary of the GMB, said: "We are considering our options and will put it to our members whether they want to keep working with Brighton and Hove City Council."
GMB drivers are due to meet within two weeks to discuss withdrawing from the current contracts - which could leave 200 children without transport.
Mr Hildreth said: "It's the last course of action. We have tried to get the council to sit down and talk but they won't.
"If the drivers did vote for that we would have to offer the children affected plenty of time to organise something for them.
"The last people we want to hurt are the children. A lot of the drivers have been working with them for years and years and have built up a close working relationship with them."
Brighton and Hove drivers have to take a DSA Taxi Drivers driving test before they are licensed and take the city's "knowledge".
Taxi firms from other parts of Sussex may not have to take the tests to get licensed by their local authority but can still tender for contracts with Brighton and Hove City Council.
The GMB, which represents about 100 drivers who carry out school runs, say this is unfair on taxi firms in Brighton and Hove.
Mr Hildreth said: "What we want is for the council to create an equal playing field regarding the contracts they issue out for home to school transport.
"They set high standards for their own taxi trade but choose to use different standards in both driver and vehicle when awarding school contracts.
"How can they say a taxi driver to be licensed has to be this standard for the local population but when it comes to the vulnerable it goes for the cheapest option."
The GMB has also raised concerns over the number of checks the council makes on taxi drivers from other areas carrying out school runs.
A council spokesman said: "All cabs that we use for school transport wherever they come from are safe and the drivers qualified for the job.
"Once that is established, value for money is the primary aim.
"If outside firms are used it is because they provide best value for money."
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