Around 80 taxis are blockading the main road in the Garden Route town while taxi bosses are meeting behind closed doors with provincial and municipal traffic authorities in George in the Southern Cape.
They are demanding that their impounded taxis be released.
On Wednesday, taxi bosses agreed to end their strike following negotiations with the municipality. This after their taxis were allegedly impounded by the provincial traffic ghost squad.
The squad is also alleged to have impounded 14 more taxis on Thursday morning, prompting fresh protest action.
Police Spokesperson Malcolm Potjie says police are maintaining high visibility in the area.