According to WorkSafe, the 63-year-old aged care resident died after her wheelchair tipped backwards when the taxi braked.
Initial reports stated the woman had fallen from a wheelchair loader.
A Victoria Police spokesperson said when the woman got into difficulty, she asked for help from the driver who immediately pulled over and rendered assistance.
Emergency services were called to the taxi in Ogilvie Ave, outside the Old Coach Motor Inn, at 12.22pm.
The woman is believed to have suffered a cardiac arrest and died at the scene.
WorkSafe is investigating.
The death brings the Victorian workplace fatality toll to two for 2021, 10 less than the same time last year.
WorkSafe is also investigating a workplace accident in Benalla last week, where an Echuca man was airlifted to the Royal Melbourne Hospital.
The man in his 20s suffered serious upper and lower body injuries while working at LS Precast concrete plant on Wednesday, February 3.
Police established a crime scene before handing over the matter to WorkSafe.
The man is now in a stable condition.
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