It was incorporated in 1936 as a successor to the Philadelphia & West Chester Traction Co., taking over as well several leased companies (including the Ardmore & Llanerch Street Railway and the Philadelphia & Garrettford Street Railway Co.) and its bus subsidiary, Aronimink Transportation Co..
It used the name Red Arrow lines as well as its own, sometimes emphasizing one name and sometimes the other.
In 1953 the company took over the high-speed lines from Philadelphia to Norristown and Strafford which had been built by the Philadelphia and Western Railway Company. The Strafford lines was abandoned in 1956, but the Norristown lines continues in operation to this day.
The company's operations were taken over by the Southeastern Pennsylvania Transportation Authority in 1970.