Two men have been killed and a woman has been wounded in Khayelitsha in an act believed to be linked to a feud between Western Cape and Eastern Cape taxi groupings.

Three gunmen - posing as police officers - stormed into the Khayelitsha house of a woman taxi owner at about 3am this morning, wounding her and killing another taxi owner and a driver.

The shooting is believed to be related to an argument over access to specific areas.

Police spokesman Superintendent Billy Jones confirmed the shooting at the house in Moses Kotyana Street, Makhaya, in Khayelitsha.

He said that both men had been shot in the chest and head and died on the scene.

Jones said the suspects had taken two cellphones before they fled in a vehicle.

The red Volkswagen Polo with a George registration they had arrived in was left at the scene. The car is believed to be a rental.

A manhunt is underway.

The two victims were said to be from the Ncedo Taxi Association, an affiliate of Cata, sources at the scene said.

However, Jones said that the dead men were believed to be from the Southern Cape and not from Khayelitsha.

According to police sources, the George-based drivers had come to Cape Town to fetch the body of a person for a funeral and to carry passengers to the Eastern Cape for the funeral from Makhaza, in Khayelitsha.

Local taxi operators, however, had argued with the George group, accusing them of taking their business.

According to an agreement between groupings, operators from outside Makhaza are meant to contact local taxi bosses to get permission to operate in the area.

However, the George group had failed to do this, sources said.

Police said Khayelitsha taxi groupings had decided to pay men to patrol the N2 to look out for Eastern Cape and Southern Cape operators who might be stealing their business, fuelling the ongoing feud.