(JNS) Israel’s Ministerial Committee for Legislation on Sunday approved for government backing a draft bill that permits shared transportation, paving the way for international firms such as Uber and Lyft to operate in the country.

The legislation, submitted by Knesset members Moshe Passal and Eitan Ginzburg in cooperation with the Transport Ministry, is designed to regulate and enable ride-sharing services in Israel while striking a balance with the taxi sector and ensuring passenger safety, the ministry said in a statement.

Technology-based transportation operators will be permitted to offer app-based ride services connecting private drivers with passengers, the statement read.

The move is expected to expand transportation supply and lower fares for the general public, according to the ministry.

Ginzburg of the Blue and White Party told JNS on Monday that although security concerns about ride-sharing services were not unfounded, their prohibition has been mainly political.

The security risks will be discussed in the Knesset, he continued, but “the situation is not so different when it comes to taxis. With Uber, you can see who the driver is before getting into the car and view their rating, transparently displayed in the app—there is even a clause in the bill requiring this.”

Ginzburg maintained that security problems exist in major cities such as London and Paris, yet Uber “works well” there.

“We must open the market to competition and enable advanced, accessible, affordable ride-sharing services. … In general, to lower the cost of living in Israel we must open markets—in transportation, food, pharmaceuticals and more—to ease imports and allow prices to fall,” he added.

Introducing ride-hailing applications such as Uber, Lyft and Bolt to the Israeli market would make commuting more efficient and cheaper, Passal (Likud Party) told JNS.

Addressing opposition from taxi drivers that he and Ginzburg have faced, Passal said a distinction must be made between taxi drivers themselves and those who have paid about 250,000 shekels ($67,000) to purchase a taxi license number.

“The taxi drivers are not against it. They currently have to pay 3,000 shekels [$800] a month to rent a taxi number. Our law will allow them to stop paying that amount and simply join the app without paying a rental fee or special insurance,” he said. “Those who paid about 250,000 shekels to get permission to operate a taxi are opposed because they want to preserve their monopoly over the market and prevent people from using other apps. These people will, of course, be compensated,” he added.

Ride-sharing is the appropriate transportation solution for Israel, said Passal. “Every day there are people traveling from Tel Aviv to Jerusalem alone in their cars. They could take three additional passengers for a fee. That would mean less traffic and fewer cars on the road,” he said.

For security reasons, drivers seeking to join the platforms would be required to upload identification and verify their identity, Passal said, adding that passengers would be able to choose their drivers. Drivers may also be required to obtain police authorization, he said, noting that regulatory details have not been finalized.

“We will make sure not only Uber enters, but other apps as well. We will not replace one monopoly with another. In Israel, aside from the cellular reform and the Open Skies policy, there have been no reforms of this scale in the past 20 years. Competition benefits consumers everywhere,” said Passal.

“Sometimes I lead Knesset discussions with people who say they are not sure competition lowers prices. There is a reason the United States is the most successful country in the world—it has a competitive economy. That is what delivers the greatest value to consumers,” he added.

Transport Minister Miri Regev said on Sunday: “Today’s approval is a historic step that will dismantle outdated monopolies, create thousands of new jobs, and open the market to genuine competition for the benefit of the public. The shared-ride reform is real news for Israeli citizens—it will help reduce private cars on the roads, ease congestion, and give every citizen the ability to travel easily at a fair price.”

Transport Ministry Director General Moshe Ben Zaken was quoted as saying, “Shared-ride services operate in dozens of countries worldwide, and it is time for them to operate in Israel as well.”

He went on to remark that the ministry formulated a model that balances the “need for flexible transportation” while establishing a “fair compensation framework” for the taxi sector.

“Our goal is to allow every citizen, at any hour, to order a ride at the push of a button, creating a real and cost-effective alternative to private car ownership and helping reduce the cost of living,” Ben Zaken said.

The ministry said that the draft bill includes strict safety regulation that demands driver screening, appropriate insurance and oversight of vehicle conditions.

For companies such as Uber to start operating in Israel, the bill needs to pass in the Knesset.

Some in the taxi sector voiced their opposition to the legislation.

Zohar Golan, chairman of the Taxi Drivers Association, was quoted by financial outlet Globes as saying: “Behind the ‘Uber’ slogan lies a move that directly harms drivers who operate legally. This is a legislative ambush being pushed forward without genuine dialogue with industry representatives …, dealing a severe blow to the livelihoods of tens of thousands of taxi drivers in Israel.”

He added, “If the government truly seeks to lower costs for the public, it should ease the burden on licensed taxi drivers who have undergone training and paid hundreds of thousands of shekels for professional licensing.”

Previous Uber operations in Israel

Uber previously launched in Israel in August 2014, initially offering a taxi-hailing service through its app that connected passengers with licensed taxis. This was intended to compete with local services like Gett.

Around late 2016, Uber began experimenting with pilots such as Uber Night and Uber Day, which allowed private drivers (not traditional taxi drivers) to carry passengers, labeling what riders paid as “reimbursements” to try to work around regulations.

These services ran mostly in Tel Aviv and mainly on weekends.

In November 2017, the Tel Aviv District Court barred Uber from operating its ride-sharing services using private drivers because they lacked proper taxi licenses and insurance.

Uber faced legal pressure and an indictment for operating without a license from the Transport Ministry.

After the court decision, Uber was effectively restricted from offering broader ride-sharing with private cars under the classic UberX model; it continued mainly as an app for ordering licensed taxis, but uptake was limited.

The COVID pandemic reduced activity sharply, with Uber’s presence in Israel shrinking near to zero before a renewed push.

In July 2022, Uber re-entered the market by partnering with a network of licensed Israeli taxis rather than private drivers—essentially becoming a platform to hail metered taxis via its app in cities such as Tel Aviv and Jerusalem.

In June 2023, Uber announced it would end its taxi-hailing service in Israel entirely, citing regulatory uncertainty and limited market share against competitors like Gett and Yango.

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