Crazy Taxi is an arcade-like racer where the player takes the role of a taxi driver who weaves his way through crowded streets, across sidewalks, and even underwater, in a wild and frantic race to deliver passengers on time. The courses are largely set inside cities crowded with general traffic and pedestrians (which can't be run over, they dive away). The main goal is to bring as many customers as possible to their destination in time. Available customers are marked through circles and the color represents the distance and the fare they offer. Green means long rides with plenty of money, and red ones are very short.
In the game, players must deliver passengers on time to earn rewards. The main Arcade mode has a timer that quickly runs down, which can be replenished by picking up customers. Players can drive recklessly and disregard traffic rules, but these actions will give extra tips for speedy and dangerous driving. The reward at the end of a ride is based on the amount of time left, as each customer also has a personal timer. The city is filled with slopes and jumps, and the game uses a very loose driving model. No damage can be done to the car, so driving as fast as possible is encouraged.
The game also features Original mode and Crazy Box where specific goals need to be met on closed-down courses. In regular modes, players can disregard the usual timer and play for a fixed amount of minutes. At the end of the race, the player is rewarded with a license, either D, C, B, or A, with S for outstanding performance. The game also features four cabs and drivers to choose from, each with different statistics and attitudes while racing. The soundtrack features songs by The Offspring and Bad Religion.