The world's first motorised taxi cab was built by Gottlieb Daimler in 1897 and began operating in Stuttgart in June 1897. The vehicles soon became popular and began operating in Paris in 1899, London in 1903 and in New York in 1907. In Estonia, gasoline-powered taxicabs were introduced in 1906.
Up until 1932 most cars on the road in Estonia were taxis. This was because people
lacked the ability to use the car only for private drives. Fares were originally agreed with the driver before the taximeter system was introduced. By 1940, there were about 3600 cars in Estonia, used for both public and prviate use.