The suspects were picked up in the area of Ronan Avenue and Church Street by a taxi at about 10:20 p.m. They were driven to the area of Glen View Elementary School, where they had reportedly been asked to be dropped off.
One of the suspects, who had some type of stabbing instrument, demanded money from the driver, according to the Police Department. Another suspect placed his right hand in his front waistband and also demanded money.
An unknown about of cash was taken.
All three suspects left and the weapon wasn't recovered, police said.
The cab driver wasn't injured.
Anyone with information regarding the armed robbery is asked to contact Gilroy police at (408) 846-0350.