A man has been arrested after an attack on a Melbourne taxi driver who confronted a pair of fare evaders.

A 21-year-old Essendon man was taken into custody on Sunday after the robbery on Saturday night.

• Sydney woman dies at music festival
• Coalition’s grand $4b public transport pledge
• Palmer launches Vic election plans

Police say a man and woman hailed the taxi in South Melbourne about 11.30pm and were driven to Essendon where an argument broke out over who would pay the fare.

As the couple left the taxi, the driver demanded they pay the fare.

The man then returned to the taxi and punched the driver a number of times, ripped his turban from his head and pulled his beard.

The driver was then pushed head-first over a nearby fence, struck in the shoulder by the man’s knee and repeatedly punched.

Police say the man then stole the driver’s cash.

He was treated at the scene for a dislocated shoulder, swelling and bruising.