The footage from the Hackney Carriage driver, 41, was widely shared on social media to the horror of viewers.
He was later arrested by police on “suspicion of religiously aggravated harassment”.
The driver appeared before Preston City Council’s Taxi and Miscellaneous Committee today to have his Hackney Carriage driver’s licence reviewed.
A Preston City Council spokesperson said: “During the course of the hearing, the driver agreed to hand-in their Hackney Carriage driver’s licence by the close of business today, and has already done so.
“This will be in effect until the completion of the related police investigation and any subsequent legal processes.
“The driver will be unable to drive a Hackney Carriage in Preston until reappearing before the Taxi and Miscellaneous Committee for a full licence review.”
Following the release of the video a petition calling for the Deepdale-based driver’s licence to be revoked was launched and has now reached almost 2,000 signatures.
The taxi driver was bailed by police until Wednesday, January 16.