Shane Maughan, 20, of St Helens, Merseyside, was driving a silver Ford Mondeo when the crash occurred at about 01:00 GMT on Saturday, on Manchester Road in Burnley. He died at the scene.
The taxi driver, 48, suffered serious chest and leg injuries and was taken to Royal Preston Hospital.
His two female passengers, aged 58 and 38, received head injuries.
They are all from the Burnley area and are now recovering, police said.
A Toyota Yaris, which was parked and unattended at the time, was also damaged in the collision.
Lancashire Police said the incident has been referred to the Independent Police Complaints Commission as a matter of routine after the Mondeo was spotted by a police officer on Rossendale Road shortly before the crash, but there was no pursuit.
A young driver who died after a collision with a taxi in Lancashire has been named by police.