Superintendent Neville Taylor said the taxi driver then stood at the boot of his car, exchanging details with the other people involved in the minor crash.
As he was doing so, a third car, a silver Mitsubishi Colt, smashed into him, crushing him between the two cars. The driver of the Mitsubishi, believed to be a man in his 50s, fled the scene on foot while the taxi driver died at the scene.
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Superintendent Taylor said police know the driver, but have yet to speak to him .
We will continue to pursue him until we find the man, he said.
[Running away] is despicable. It was absolutely obvious the level of carnage at that scene, [which] was a very minor accident to begin with and then became a very serious crash, he said.
The people involved in the first minor collision did everything expected of them, including stopping, looking out for each other making sure that everyone was ok, and exchanging all their details , Superintendent Taylor said.
Police later searched the area with a helicopter and on foot with the help of the K9 unit, but did not find the driver.
A female passenger who was in the Toyota received minor injuries during the second crash and was taken to The Alfred hospital.
Superintendent Taylor said police believed alcohol, distraction and other impaired driving were the likely causes of the crash.
This is all about high-risk behaviour on the roads that is costing people's lives, and that is just not acceptable.
Here we are again on a Sunday, cleaning up the mess, cleaning up the carnage, and more families are now going through grief with the loss of loved ones, he said.
The road toll for this year is at 166, up from 156 this time last year.
Anyone with information about the smash is asked to contact Crime Stoppers on 1800 333 000.