Police were called to reports of a racially aggravated assault in Belgrave Road, Torquay, at around 5.35pm, on Tuesday 20 April.
A taxi driver reported he had also been subjected to racist abuse after asking a passenger to wear a face mask.
A 48-year-old man, from Torquay, was arrested on suspicion of racially aggravated assault by beating and a public order offence. He has been released under investigation pending further enquiries.
Anyone with information is being urged to contact the police by email at email@example.com or by calling 101, quoting reference CR/031280/21.