It happened around 5 p.m. at the intersection of Broad and Venango streets.
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Police say an altercation involving several people turned physical after the crash. At least six gunshots were fired at some point during the fight, police said.
A 33-year-old man was hit several times in the chest. He died at the hospital.
A 38-year-old man was shot in the leg. He is listed as stable at an area hospital.
"There was a body on the floor and I saw a bunch of people around him," said a man named Taj.
Taj was working nearby and ran out of his shop to see the aftermath.
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"They said it was road rage. It's pretty tough. Every day there's something going on in Philly," he said.
Police say the 33-year-old man was driving an SUV with a 38-year-old male passenger. Their SUV was grazed by the male driver of a green car at 2nd and Erie streets.
The 33-year-old man gave chase for several blocks.
The chase ended at Broad and Venango streets when the green car hit another vehicle. The two men in the SUV allegedly got out, approached the man in the green car and started assaulting him.
Police say he fired his gun at the men, hitting and killing the 33-year-old and striking the 38-year-old passenger in the leg before running away.
No other injuries were reported.
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According to Philadelphia Police Chief Inspector Scott Small, a female passenger exited one of the crashed vehicles just before the shooting started.
"The bullet went through the driver's door. Luckily, she was out of the car... after the accident or she more than likely would have been struck by gunfire," said Small.
The man who died from his injuries has not been identified.