It happened around 9:30 p.m. on the 5300 block of Lena Street.
Police said they arrived at the scene to find the 27-year-old victim lying in the street bleeding from two stab wounds to her chest.
Officers said the victim was unresponsive but showed signs of life. She was taken to the hospital where she was pronounced dead approximately 30 minutes after.
Witness told investigators the perpetrator was a 26-year-old woman who was wearing pink shorts and had red braids.
"Police put this description out and 14th district officers did a great job. About 3 blocks away they saw a female fitting that description with the red braids, the pink shorts. They stopped that female, they brought a witness to the stabbing to the location and witness positively identified the female," said Philadelphia Police Chief Inspector Scott Small.
Police said they will interview additional witnesses to try to get a clearer picture of what led up to the incident.
Initial reports from the scene on Tuesday night indicated the stabbing stemmed from an argument over a parking space, but police said Wednesday morning that a motive has not been officially determined.