A taxi driver who wanted a young female passenger to have sex with him has been tracked down and suspended.

13CABS chief operating officer Stuart Overall told radio station 3AW on Tuesday morning that "we've been swift in our action. We've suspended the driver. We got him in yesterday to 'please explain' and we've suspended him immediately pending a further investigation."

Sarah, 19, booked a taxi through 13CABS last Thursday. The cab picked her up at midnight from Clayton, for a 6km trip to a friend's party in Huntingdale, but stopped a few streets short of the destination.

Sarah said the driver repeatedly propositioned her and "refused to take no for an answer".