The incident was reported shortly after 6 p.m. near the intersection of Grand and Cesar Chavez avenues, according to the Los Angeles Police Department. The call originated as a back-up call from fire officials who found the victim with a crowd forming around.
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The driver suffered a "major trauma" after being stabbed in the facial area following some kind of dispute with the suspect, police said.
Witnesses say the driver, described as an elderly man, pulled into the parking lot with a passenger. Both of them then exited the car.
"The man razzled him down, I guess in an attempt to rob him or something, and stabbed him right in his neck," April Adams said.
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Authorities were looking into surveillance footage from surrounding cameras, including inside the taxi.
Authorities described the suspect as a bearded man wearing a black zip-up sweater and pants.
A motive for the stabbing was under investigation.