The Western Cape Transport Department said that it had taken steps to resolve the ongoing dispute between Codeta and Cata.
More soldiers will be joining the South African Police Service in Cape Town, to put an end to the ongoing taxi wars.
The department has also published a notice in terms of Section 91 of the National Land Transport Act, which will allow MEC Daylin Mitchell to close routes and ranks, but he is yet to make a decision.
Chief Director Yasir Ahmed said that the department had suspended its financial support agreement with Santaco until the violence ended, as well as Blue Dot incentive payments to Cata and Codeta as a direct result of the conflict. And he said that the department would also head to the courts.
Since the start of the year, at least 80 people have been killed in taxi-related shootings.
Over the last two weeks, violence has gripped the city once again, despite a peace agreement between warring factions.
Now, local government and police are focused on restoring calm.