Jason Scherer, 47, had taken three people across Armley at around 5.30am this morning.
Once reaching the destination at Simpson Grove - a journey so short it only cost the minimum fare - one of the men said he had lost his wallet and couldn't pay the £3 fee.
Jason, a father-of-three, reached to call the Amber Cars office - a firm where he has worked for 19 years - to indicate the fare could not be paid by the customers before he felt what he believed was a punch to his neck.
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After driving around 50 yards down the road to get away from the customers, Jason realised he had been stabbed in the neck and blood was pouring from a wound, his son Connor told the Yorkshire Evening Post.
Jason returned to the Amber Cars headquarters where an ambulance was called and he was rushed to Leeds General Infirmary.
He is now facing the prospect of surgery on the wound on the right hand side of his neck.
His family have been at his bedside all day in 'complete shock', Connor said.
West Yorkshire Police confirmed details of the incident and said no arrests have been made.
They have launched an urgent appeal for witnesses.
Anyone with information is asked to contact West Yorkshire Police on 101 quoting crime reference number 13200015564 of 10/01.