Shocking dashcam footage shows the stranger lunge with a blade at the cabbie's window after a dog runs in front of the car.
Northumbria Police is now probing the broad daylight attack in Benwell, a suburb of Newcastle.
It is believed the attacker lashed out after a woman's pooch darted onto the road and narrowly avoided being run down by the Peugeot motor.
A pal of the "gobsmacked" driver, who works for local firm Blueline Taxis, said: "He was driving innocently along at about 20mph when a lad in a grey tracksuit came along.
"The lass' dog ran in front of the car and he's stopped but then this lad has started chasing.
"He's then started stabbing the window and even tried stabbing him through the glass."
The windscreen managed to protect the driver during the vicious attack but was left with several large scratches.
Another friend of the driver said he was left "shaken up" by the ordeal.
They said: "He was driving at 11.30am and at that time, there could have been a mum with young children in the car or it could have been a little old lady.
"I'm just glad he didn't retaliate."
A Northumbria Police spokesman said: "At around 11.45am on Monday police received a report that a man had damaged a vehicle on Armstrong Road in Newcastle.
"It was reported that the man was armed with an unknown weapon, believed to be a dog chain or bat.
"The man was having an argument with a woman in the middle of the road when he has become aggressive and hit the stationary vehicle.
"Police have attended the area but the man and woman had already left the scene."
Enquiries into the incident are ongoing and anyone with information should call 101 quoting log 420 19/11/18.
Blueline Taxis was contacted for comment.
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