Police said a man in a BMW was driving southbound on Highland when he allegedly ran a red light and hit the taxi that was traveling eastbound on Sunset.
The 35-year-old taxi driver was freed from the wreckage and rushed to a local hospital, where he was declared dead at 3:30 a.m.
Two other people were injured in the crash.
Police arrested the driver of the BMW shortly after the last injured person was taken away.
Police said alcohol may have been involved.
Traffic is expected to be congested in the area as police continue to investigate the collision.
City News Service contributed to this story.