An unlicensed driver had his 14-seater taxi impounded in Belhar last week after being caught ferrying 32 commuters in his minibus - more than a dozen of them standing.
Officers on duty at the intersection of Chestnut Way and Erica Drive on Thursday saw the driver "committing several violations" and pulled him over, the City of Cape Town said on Monday.
In addition to being overloaded, he was confirmed to be unlicensed and operating in contravention of his operating licence.
The taxi was impounded and the driver was arrested.
Mayoral committee member for safety, security and social services JP Smith described the incident as "absolutely shocking.
"While I understand that there is immense pressure on the public transport system, as well as the people who rely on it to get to work, there is no excuse for this type of behaviour. I shudder to think of the consequences if that vehicle had to be in a collision," he said.
He urged commuters to steer clear of overloaded vehicles for their own and others' safety.
"Incidents like these do nothing for the reputation of the taxi industry, and so I also call on owners and associations to address this type of lawlessness."