Detectives have arrested 25-year-old Glen McDaniel, of the 2800 block of Aramingo Avenue.
McDaniel is charged with murder, homicide by vehicle, driving under the influence and related charges in the death of 30-year-old Ray Santiago.
It happened in the parking lot of O'Reilly's Pub, located at Frankford Avenue and Lehigh Avenue in city's Kensington section.
Philadelphia police say at around 3:00 a.m. Sunday, the two drivers got into an argument.
After heated words, the argument became physical and that's when police say McDaniel got into his truck and struck Santiago, who drove for Siani's towing.
Police say McDaniel then backed up and hit Santiago again before driving off.
McDaniel, who detectives say worked for Straight Up Towing, was apprehended a short distance away in the 2300 block of Auburn Street.
Santiago was pronounced dead at Temple University Hospital.
You may remember that in July, disputes between towing companies competing to get to accidents erupted in violence. One driver was shot in the leg, allegedly by a driver for J & Sons - a rival company.
The following week, three men set fire to cars in the J & Sons tow lot, allegedly in retaliation for the shooting.
Philadelphia police are trying to defuse the tensions by dispatching tow companies to accidents by computer, not on police radio. But some city leaders want tougher reforms.