Founded in 1976, Market Street Railway members created the successful San Francisco Historic Trolley Festival of the 1980s that resulted in the permanent return of streetcars to Market Street in the form of the F Market & Wharves — the most popular service of its kind in all of North America. Service on F-Market commenced on September 1, 1995, replacing Muni's 8-Market trolley bus line. Currently, the F line carries nearly four times the ridership of the bus lines it replaced. In 1996, one year after service began, F-Market streetcars carried an average of 7,758 passengers per day, a 43% increase in ridership over the 8-Market trolley bus. By 2008, F-Market streetcars were carrying an average of 20,000 riders per day, and were so overcrowded that drivers were forced to skip stops. For comparison, the Muni Metro system carried an average of 130,000 passengers per day through the Market Street subwayin 1999. Service expanded in 2015 with the E Embarcadero line. The E line directly connects several regional transit services, including Caltrain, BART and bay ferries to waterfront businesses and attractions stretching from Mission Bay to Fort Mason. Since its inception, Market Street Railway has helped Muni to acquire and restore more than a dozen historic streetcars and cable cars for service, adding diversity to Muni’s large historic fleet. Market Street Railway's restoration corps has done much of this restoration work themselves. Its volunteers also clean the cars' interiors at the Castro Street Terminal to improve rider experience.
Additionally, Market Street Railway developed and operates the San Francisco Railway Museum, a local history museum in the Vitale Hotel on the Embarcadero that showcases historical railway artifacts and tells the story of transportation in San Francisco.
Led by President Rick Laubscher, Market Street Railway is working to increase F-line service levels. Extension of historic trolley service through Fort Mason Tunnel is currently being evaluated by Muni. Market Street Railway is also working to restore and inaugurate the Market Street Railway Teaching Trolley, a 1924 streetcar that will serve to teach schoolchildren how electric railway vehicles work.