STORY: An unidentified young man shot at the buses and panicking passengers jumped out of the doors and windows trying to escape, some of them injuring themselves, witness Nandipha Dlelana said.
"I am worried because we won't be able to go to work when taxis don't operate. We can't take the risk because of the gunshots," Dlelana told Reuters.
The Western Cape provincial government, home to legislative capital Cape Town, blamed a lack of funds for canceling the scheme which offered taxi drivers incentives to encourage safe driving practices and curtail illegal operations.
The decision to terminate it less than a year after it started triggered an uproar from the taxi associations who called for a two-day strike in the city from Monday.
The associations were not immediately available for comment on Monday.
Golden Arrow Bus Services, which runs a fleet of 1,100 buses in Cape Town, said one of its vehicles was set alight. Spokesperson Bronwen Dyke-Beyer said the company did not know who was responsible.