The driver was let go after Montreal taxi driver Mouhcine El Meliani posted a video to YouTube documenting the altercation in front of a hotel on Sherbrooke Street West.
The altercation began when El Meliani offered his taxi services to a woman he saw exiting the hotel.
She declined, saying that she had already organized a ride.
El Meliani then noticed that her lift was from the UberX service and vowed to tape the scene and report it to the taxi bureau.
The UberX driver took exception to being taped and the two spent about two minutes arguing. He is eventually seen spitting onto the camera.
A representative for the company was quick to denounce the driver.
"This behaviour is totally unacceptable and the partner-drivers involved have been removed from the Uber platform," Uber spokesperson Jean-Christophe De Le Rue wrote in a statement.
"We regret that the taxi driver was abused in this way."
El Meliani said he has reported the incident to Montreal police.
"My goal is to stop these illegal drivers by giving their license plates to the taxi office," he later told Radio-Canada.
Taxi drivers have repeatedly denounced the UberX service as unfair competition.
Their campaign has been championed by several politicians, including Quebec Transport Minister Robert Poeti and Montreal Mayor Denis Coderre.