Israel’s Transportation Ministry announced that a ministerial committee has approved a new bill that will allow shared ride‑hailing services, including Lyft and Uber, to operate in the country. The legislation removes a long‑standing regulatory barrier that had kept foreign platforms out of the Israeli market.
The barrier had stemmed from strict licensing requirements that favored the domestic taxi industry, which has historically opposed the entry of ride‑hailing companies. The new law introduces comprehensive safety standards, driver screening, insurance coverage, and vehicle condition oversight while also establishing a support mechanism for existing taxi operators to ensure a fair transition.
For Lyft, the approval represents a significant step in its international expansion strategy. The company has been actively pursuing growth outside the United States, most notably through the acquisition of FreeNow in Europe. Gaining access to Israel adds a new revenue stream and expands Lyft’s footprint in a technologically advanced market that is receptive to digital mobility solutions.
Uber’s brief prior presence in Israel ended in 2023 after the company faced court injunctions that blocked its private‑driver service due to insurance and licensing gaps. The new bill addresses those gaps, potentially allowing Uber to re‑enter the market and intensify competition with Lyft and local taxi operators.
The legislation is expected to increase competition in Israel’s transportation sector, potentially lowering fares and improving service availability for consumers. While the taxi industry remains opposed, the government’s support mechanism aims to mitigate the impact on traditional operators and promote a more balanced market. The approval signals a broader trend of regulatory reforms that enable ride‑hailing platforms to enter markets previously closed to them.
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