In 1905 Walden W Shaw and John D. Hertz partnered in an auto agency that became the Walden W Shaw Company. In 1907 it acquired some Thomas Taxicabs with meters. The Shaw Livery Company, which combined several livery and taxicab companies, was founded in 1910, operating Keaton Thomas Flyers, and Cadillacs, and ultimately 12 different models.
None of these fully suited the taxicab industry, so on December 31, 1914 the first Yellow Cab Manufacturing Company Cab was designed, and the Model J was released in August 1915.
Yellow Cab taxicab service was founded by John Hertz in December 1, 1915. The related Yellow Cab and Yellow Truck and Coach Manufacturing Company acquired Walter L Jacobs car rental business. The Yellow Truck Company and rental car business was sold to General Motors in 1926.
Hertz ran the taxicab company until 1929, when he left to found another rental car company, Hertz Rent-a-Car, which still uses a yellow logo as well.
The taxicab company was purchased in 1929 by Morris Markin, who had established Checker Cab Manufacturing Company, with the Checker Taxi, a driver's cooperative.
The company was sold again in 1996.
The color yellow
The color (and name) yellow was selected by John Hertz as the result of a survey by the University of Chicago which indicated it was the easiest color to spot.