The injured passenger was found to be in possession of a machete.
He was arrested before being taken to hospital for treatment for injuries to his legs and arms.
The statement added: “The Met DPS launched an investigation alongside colleagues from the Met’s Road and Transport Police Command.
“The IOPC has been informed and we are informed that they have launched an independent investigation.”
An IOPC spokesperson said: “We understand the collision took place at around 6.45am after the motorcycle failed to stop for two marked Metropolitan Police Service (MPS) motorcycles on Tottenham Court Road.
“Shortly afterwards, it is understood that the 18-year-old driver of the motorcycle collided with a taxi and sadly died at the scene. The passenger’s 17-year-old passenger suffered non-life-threatening injuries.
“After being notified by the MPS, we have sent investigators to the scene and post-incident police procedure to begin our investigations.
“Our thoughts are with everyone affected by this tragic incident.”