In 1922, Morris Markin started the Checker Cab Manufacturing Company, which later would become a huge success for the American Checker Automobile Company. By the early 1920s and 1930s, the taxicabs were beginning to offer great styling and features.
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The first motorized taxicabs were electric-powered vehicles that began appearing on the streets of European and American cities in the late 1890s. Internal combustion-powered taxicabs equipped with taximeters first appeared around 1907 and have dominated taxi travel ever since.
Hansom cabs were patented in 1834 by York architect Joseph Hansom. They were two-wheeled carriages drawn by horses and were much lighter and faster than the Hackney carriages. They were also cheaper to ride in. The Hansom cab soon spread to Berlin, Paris, St Petersburg, and New York City.
In the 1920's, trains and ocean liners were the dominant mass transportation methods, providing comfortable, reliable transport to millions of American vacationers. Trains had opened up the continent and ships the world, but newer methods of transport captured the imagination of the public and reduced travel times.
According to Yellow Cab Co. tradition, the color (and name) yellow was selected by John Hertz as the result of a survey he commissioned at a local university, which indicated it was the easiest color to spot.