The terrifying ordeal occurred on Rialto Street in Rialto, Dublin 8 at approximately 11.55pm last night.
A male taxi driver was threatened by a man armed with a knife who demanded cash and his phone before fleeing the scene.
The taxi driver did not receive any injuries during the incident.
In a follow up operation Gardaí from the Kilmainham District Drug unit arrested a man in his 30’s in connection with the robbery.
"All property was recovered," Gardai said.
The man is currently detained at Kevin Street Garda Station under the Provisions of Section 4 – Criminal Justice Act 1984.
Investigations are continuing.