Israel moves a step closer to allowing Uber and Lyft on its streets

The Ministerial Committee for Legislation on Sunday approved a draft bill to advance regulation that would allow rideshare services such as Uber and Lyft to operate in Israel, seeking to lower taxi costs for consumers.

The bill co-sponsored by Blue and White MK Eitan Ginzburg and Likud MK Moshe Passal would pave the regulatory path to permit shared ride-hailing service companies such as Uber and Lyft to offer services in Israel via phone applications that connect private drivers with passengers. The bill is expected to be advanced to the Knesset for a preliminary reading next week, and will need to pass additional readings before becoming law.

If approved, the new legislation would severely disrupt the taxi sector, which had for years successfully lobbied to keep Uber and other ride-hailing services out of Israel.

In recent months, Transportation Minister Miri Regev has been working to allow Uber to enter the Israeli market as early as the beginning of this year. The rideshare giant also provides services like food delivery, freight, and other on-demand mobility options.

The Transportation Ministry said the draft bill is intended to regulate the operation of ride-hailing transportation services in Israel, including passenger safety issues, driver screening, insurance coverage, and monitoring the condition of vehicles. The bill also includes a compensation mechanism support system for the local taxi driver industry, which has fiercely opposed the entry of the competing services.

The ministry vowed that the move is expected to significantly increase transportation supply in and around cities and in the periphery across the country, improve service availability during peak times and on weekends, and lead to lower fares for the general public.

“Our vision is to move Israel into an era of smart, accessible, and affordable transportation,” said Regev. “Approval of the bill is a historic step that will dismantle old monopolies, reduce road congestion, create thousands of new jobs, and open the market to real competition that will lower the cost of living.”

Uber, which operates in some 15,000 cities worldwide, was allowed to open in Israel in 2014 as a platform for licensed taxi drivers only. However, it was overshadowed by local taxi-hailing services like Gett and Yango, and shut down in 2023. The technology platform has encountered resistance in many markets from taxi drivers who claim it undermines their livelihoods.

Zev Stub contributed to this report.