Petrol-based transport didn't replace horse-drawn drayage until the first or second decade of the 20th century in much of the US, and not until far later elsewhere. The side effects of massive horse populations in urban settings (> 150k in NYC alone) are so well-established that it's hard to find a canonical reference, though I include a couple here.

Horse droppings, urine, and carcasses were a major inspiration for the formation of New York City's sanitation department, including such features as standard uniforms (white as I recall, originally) to emphasize sanitation.

[B]y 1880 there were at least 150,000 horses in the city. Some of these provided transportation for people while others served to move freight from trains into and around the growing metropolis. At a rate of 22 pounds per horse per day, equine manure added up to millions of pounds each day and over a 100,000 tons per year (not to mention around 10 million gallons of urine).

99% Invisible Podcast, "The Big Crapple: NYC Transit Pollution from Horse Manure to Horseless Carriages": <https://99percentinvisible.org/article/cities-paved-dung-urb...>

The sanitation challenges caused by the 2.5 million lbs of manure daily and 60,000 gallons of urine from the City's more than 100,000 animals led to the First International Urban Planning Conference.

"The Great Horse Manure Crisis of 1894"

<https://themuseumwithoutwalls.org/Site?itemId=19747>

Tracked transport is efficient, but it is not flexible, and streetcars on rails are inherently limited in routes, as well as being subject to congestion (delays and stoppages tend to propagate).

Note that as of 1900, horses also consumed 25% of all grain production in the US. One reason the industrialised world switched to fossil fuels was that the limits of biofuels had already been reached.

(This is of course not the same as suggesting that fossil fuels are without their own side effects, limitations, or are inexhaustible.)