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The concept of the taxi has been around for centuries. European carriages would take people around for a fee, and wagons even did the same thing as America was developing. The actual term for taxi came from the taximeter, which was an invention designed by the German Wilhelm Bruhn that was intended to track the distance driven. Actual vehicles with meters in them came about between 1897 and 1907, beginning in Germany and then spreading to Paris, London, and New York.

Taxis became a very popular means of transportation in crowded cities, but they were never painted yellow until 1967. As the streets were getting more crowded with cars, taxis needed a way to stand out among the traffic to get more riders. Yellow painted taxis ended up being far more profitable than the black, brown, or silver taxis were before the 1960s. Although taxis have a new competitor with the Uber and Lyft apps, they are still used with great frequency in London, New York City, Mexico City, Tokyo, and Lima, Peru.