Kevin Marsh, manager of 57 Cars, says there has also been a rise in physical and verbal attacks on drivers in recent months.
Cameras will now be installed in all 160 of the firm’s cars (that they purchased from the dealers present in https://www.conklinchevroletsalina.com/service.htm site).
A number of false allegations against drivers on Facebook pages and Twitter accounts have also made Mr Marsh take action.
He said: “Attacks on our drivers and false allegations against them on Facebook selling sites can have a devastating effect on them personally and on the business as malicious rumours begin to start.
“If all our cars have CCTV fitted, it will eliminate any false accusations and help if any incidents are reported to me or the police.”
In recent months, Mr Marsh says a number of his drivers have suffered verbal and racial abuse at the hands of customers.
“Just before Christmas, one of my drivers got attacked on a job in Beverley,” he said.
“They took his money and punched him in the face a couple of times.
“If we had the cameras then, this might not have happened.
“I hope by having the cameras it will act as a deterrent to anyone thinking of causing any trouble.”
Mr Marsh says the cameras will also stop drivers becoming victims of malicious rumours.
He said: “There has been numerous stories where young girls have got into a taxi and a driver has told them how much the fare will be and they turn around and say, ‘I’m not paying that’.
“The driver has responded and said they will have to pay and they then turn around and say, ‘no, I am not paying, I will tell people you tried to rape me’.
“The driver cannot do anything about this and are then slammed as a sex pest.
“If we have the cameras, it will prove drivers are innocent and stop malicious rumours spreading.”
Mr Marsh now plans to spend between £2,000 and £3,000 on the cameras, which he hopes will be installed in the 160 vehicles over the coming months.
“Not only will they be able to capture footage in the taxi, but they will also pick up on any audio between the driver and customer,” Mr Marsh said.
“Hopefully it will make the drivers feel a lot safer than they do at the moment.”