The drivers defied attempts by state security forces to disperse their protest and revoke their taxi licenses during the two-hour stand-off outside the city’s taxi bureau on Saturday morning.
Elsewhere in Sanandaj, drivers stopped work and refused to take passengers, according to reports from inside Iran.
As the cost of living soars in Iran, the drivers are demanding taxi fares be raised in line with inflation, the return of the subsidy for spare vehicle parts and a reduction in gas prices.
They are also calling for drivers to be hired on a monthly salary, specific working hours and shift work the cabs to reduce traffic congestion and to ease their service to the public.