The incident occurred around 3 a.m. at the intersection of King Street East and Princess Street.
Passengers in both vehicles suffered injuries that were described by police as minor.
The collision coincides with an ongoing hearing in a Toronto court as the city seeks an injunction to permanently shutter Uber's operations.
Taxi drivers have staged multiple demonstrations downtown and in front of Queen's Park in protest of the ridesharing service, which doesn't pay the same fees as taxi companies do to operate in the city.
A decision in the hearing could come as early as today.