A family-run taxi firm, which advertised for staff on Facebook but said it did not want to employ Pakistani or “dark” drivers, has denied being racist.
Janet Cardy, whose husband owns Cardy Cabs in Port Talbot, said they have since received a death threat.
South Wales Police said it was looking into the matter and Neath Port Talbot Council condemned the posts.
“I’m having people phoning our office, abusing us,” said Mrs Cardy.
“I’m having threats. I’m frightened in case someone [puts] our windows in or set us alight.”
She said she was responding to complaints from customers in her Facebook comments.
“We pick up the phone and they say ‘don’t send me a foreign driver’,” she said.
Mrs Cardy insisted she was not racist and had employed several drivers from Pakistan.
The firm has lost a number of local contracts and BBC Wales understands that a number of others are now at risk.
The post was criticised on social media and former Plaid Cymru leader Leanne Wood tweeted that it had “disgusted” her.
A Neath Port Talbot Council spokesperson said: “The individual in question does not hold any licences with this authority, hence we are unable to take formal action.”
Port Talbot Taxi Association chairman, Mike Allen, who is also one of its drivers, said: “We fully welcome all nationalities both as customers and drivers alike.
“However, we are aware we need customers and drivers to be able to understand each other for obvious reasons.”
Publishing an advert which discriminates on the basis of a protected characteristic, which includes race, is unlawful under the Equality Act 2010.