The strike was called off following a meeting between industry representatives and Transport MEC Donald Grant.
On Monday morning buses were set alight and stoned and thousands of commuters were stranded around the city.
Taxi owners say South Africa National Taxi Council (Santaco) provincial leadership's term lapsed in March.
Grant says this issue must be addressed.
“Someone with legal experience and preferably someone also who has transport industry knowledge. We [must] find a lasting solution to their election processes by the end of November.”
They are demanding new leaders be appointed.
The operators also want authorities to release taxis impounded for outstanding fines.
The Transport Department's Task Team spokesperson Besuthu Ndungane said all taxi operations would resume on Monday afternoon.
“There is no one that has been instructed to go and disrupt other transport modes. There is no one that has been instructed to go and set alight any busses. And we are sincerely disappointed with what has happened.”
Law enforcement authorities remain on full alert.
Meanwhile, Grant says a mediator will be appointed to address leadership issues within the taxi industry which led to a disruptive strike on Monday morning.
He has some good news for taxi commuters.
“So I’m very grateful to both groups for finding a way forward today with us. Some of the taxis will be back on the road this afternoon, I’m told, but the bulk of them should be operating normally in the morning.”
PASSENGERS INJURED
A pregnant MyCiTi bus commuter has today been injured during protests apparently linked to a taxi strike.
Violent protests erupted across Cape Town on Monday and two passengers, including a pregnant commuter, sustained injuries when a MyCiTi bus was stoned in Khayelitsha.
One of the commuters was hit in the face by a flying rock and the pregnant woman fell during an attack near the Kuyasa stop.
Both women were severely traumatised and were admitted to hospital.
Four MyCiTi buses were stoned in Dunoon, Mfuleni, and Khayelitsha, and a fifth was set alight and burnt out on the N2 highway under the Symphony Way bridge.
MyCiTi personnel, who were being transported in Khayelitsha, were forced out of their vehicle, and another shift vehicle was hijacked in Philippi early in the morning.
The Golden Arrow Bus Service says at least 150 bus windows were stoned and a bus torched in Delft.
