The collision happened around 8:30 p.m. on Saticoy Street near Yolanda Avenue.
The two cars were heading west on Saticoy, possibly racing, when one clipped a van and lost control, police said. The second vehicle also lost control and crashed into a string of vehicles on the sidewalk.
In total, three people were injured, including the two driving suspects.
Police were investigating whether street racing may have been possible causes of the collision.
One driver had tried to flee the scene on foot, but community members helped detain the person until officers arrived and took the driver into custody. The second driver was taken into custody and was taken to a local hospital in critical condition. One of the arrests was for DUI.
Witnesses said it appeared as many as eight vehicles, including cars parked on the street, were damaged, but no additional injuries were reported.