A committee of the Israeli Ministry of Transport and Road Safety approved a new law on January 18 that would allow technology‑based transportation operators such as Uber and Lyft to legally operate in Israel. The law removes the long‑standing requirement that drivers hold a taxi licence, a barrier that had kept the two companies out of the market.
The legislation establishes a regulatory framework that includes mandatory safety standards, driver background checks, vehicle insurance coverage, and ongoing oversight of vehicle conditions. It also creates a “fair transition” mechanism for the existing taxi industry, which will receive compensation and retraining support to help drivers adapt to the new market structure.
While the committee approval is a significant step, the law still requires full parliamentary passage before it can take effect. The government has indicated that the bill will be presented to the Knesset in the coming weeks, and industry observers expect the final approval to be completed by the end of the first quarter of 2026.
Uber had previously operated in Israel as a traditional taxi service but shut down in 2023 after regulators denied it the ability to use its ride‑hailing platform. The new law therefore represents a major reversal of that decision and could allow Uber to launch its full suite of services, including surge pricing and driver‑app integration, in a market that has shown growing demand for on‑demand mobility.
The approval is expected to increase competition in Israel’s transportation sector, potentially lowering fares for consumers and creating thousands of new jobs. It also opens the door for informal drivers who have been operating without licences to legalise their businesses, which could reduce the prevalence of unregulated rides.
Transport Minister Miri Regev described the law as a “historic step that will dismantle outdated monopolies, create thousands of new jobs, and open the market to real competition for the benefit of the public.” She added that the goal is to lower the cost of living by making transportation more affordable and efficient.
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