As in many other cities around the world, Chicago started out with horse-drawn streetcars in 1859. Many cities transitioned from the horse-drawn vehicles to electric-powered ones starting in the 1880s, but Chicago invested heavily in a cable car system instead, eventually creating the largest cable car system in the world. While cable cars have a distinct advantage in hilly cities like San Francisco, they are generally inefficient and expensive relative to electric streetcars operating with overhead wires. Chicago didn't have the hills to warrant a cable car system, so operators began making the transition from cable to electric by the 1890s.
The streetcars thrived throughout the 1920s, but already began their decline in the '30s falling to competition from cars and buses. In 1957, the last streetcar routes were replaced with bus routes. This postcard is likely from the early 1920s and includes a pitch for the Gray Line bus sightseeing tours:
P.S. Saw this view while riding the Gray Line sightseeing car -The Best Everywhere.
Here's an
earlier post that shows a double-deck sightseeing bus (though not a Gray Line) in Chicago.