By Steven Scheer
JERUSALEM, Jan 18 (Reuters) – An Israeli ministerial committee on Sunday approved a law that would allow shared ride hailing services such as Uber and Lyft to operate in Israel in a bid to lower taxi costs.
Under a reform promoted by the Transportation Ministry, the law – which still needs full parliamentary approval – would regulate and enable “technology-based transportation operators” using models successfully used globally.
The ministry noted that the Shared Transportation Law approved by the Ministerial Committee for Legislation would allow companies such as Uber and Lyft to offer services via smart applications that connect private drivers with passengers.
The move, it said, is expected to significantly boost transportation supply, improve service availability during peak times and on weekends and lead to lower fares.
It added that such services operate in dozens of countries around the world “and the time has come for them to operate in Israel as well.”
The law includes strict safety regulation, driver screening, insurance coverage and oversight of vehicle conditions, along with a support mechanism for the existing taxi industry to ensure a fair transition.
Uber had briefly operated in Israel but only as a traditional taxi service and shut down in 2023. The taxi industry is opposed to Uber and similar companies coming to operate in Israel.
The new law “is a historic step that will dismantle outdated monopolies, create thousands of new jobs, and open the market to real competition for the benefit of the public,” said Transportation Minister Miri Regev.
She noted that the shared rides reform would help remove private cars from the roads, reduce congestion, “and give every citizen the ability to get around easily and at a fair price.”
(Reporting by Steven Scheer, Editing by Louise Heavens)
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