Hertz had extensive and complex business interests, mainly in the transport sector. Hertz's first job was selling newspapers, and eventually he became a reporter for the Chicago Morning News. When the paper, then called the Chicago Record, merged with another paper, he lost his job. Although he couldn't drive, in 1904 he found a job selling cars at the suggestion of a friend. Because of the number of trade-ins, he conceived a cab company with low prices so the common man could afford to use them. In 1907, he had a fleet of seven used cars employed as cabs. He founded the Yellow Cab Company in Chicago in 1915, which offered taxicab service at a modest price. The distinctive yellow cabs became popular and were quickly franchised throughout the United States. He then founded the Chicago Motor Coach Company in 1917 to operate bus transport services in Chicago and the Yellow Cab Manufacturing Company in 1920 to manufactured taxicabs for sale. In 1923, he founded the Yellow Coach Manufacturing Company to manufacture coaches and later cars. In 1924, he acquired a rental car business, renaming it Hertz Drive-Ur-Self Corporation. Competition between the Yellow Cab Company and Checker Taxi in Chicago was fierce and frequently violent with a number of shootings and deaths. By 1925, the Yellow Cab Company was owned by the "Chicago Yellow Cab Company," which in turn was owned by Hertz, Parmelee and some other investors. In that year he established The Omnibus Corporation to control both the Chicago Motor Coach Company and the Fifth Avenue Coach Company in New York. In 1925, Hertz held these positions:
In 1926, he sold a majority share in Yellow Cab Manufacturing Company together with its subsidiaries, Yellow Coach Manufacturing Company and "Hertz Drive-Ur-Self," to General Motors. With the sale, Hertz joined GM's board of directors. He then sold his remaining interest in the Yellow Cab Company in 1929 following the firebombing of his stables, where 11 horses were killed. In 1933, Robert Lehman sold Hertz a minority interest in Lehman Brothersinvestment bank in New York City and he remained a member of the firm until his death. In 1938, Hertz was prepared to buy Eastern Air Lines from General Motors but the airline's General Manager, Eddie Rickenbacker, was able to raise sufficient financing to acquire Eastern before Hertz could exercise his option. In 1943, he sold his remaining financial interest in Yellow Coach Manufacturing Company to General Motors. Using The Omnibus Corporation he re-purchased the car rental business from General Motors in 1953. The Omnibus Corporation then divested itself of its public transport interests, changed its name to The Hertz Corporation and floated on the New York Stock Exchange the following year.
Personal life
In 1903, he married Francis Kesner of Chicago with whom he had three children: Leona Jane, John Jr., and Helen. His son was born Leonard J. Hertz and changed his name at the age of seventeen to John D. Hertz, Jr. in honor of his father; John Jr. later became an advertising executive and was briefly married to film star Myrna Loy.
During the Cold War era, Hertz established the Fannie and John Hertz Foundation with the purpose of supporting bright young minds in the applied sciences. Friend Edward Teller urged Hertz to orient his foundation to fund higher education. The Hertz Foundation Fellowship program is the nation's most selective; typically more than 800 applicants vie for ten to twelve fellowships, which provide full tuition and a generous stipend at top U.S. research universities. For his significant contribution to the security of the U.S., Hertz received the highest civilian award given by the Department of Defense in 1958. In 1924, Hertz fronted the city of Chicago $34,000 to install the city's first traffic lights on Michigan Avenue.
