Beit Shemesh Man Arrested for Running Unlicensed Taxi Service, As Uber Prepares to Enter Israel
Israel Tax Authority arrests Beit Shemesh resident suspected of operating unlicensed driver dispatch service with tens of millions in unreported income as Uber prepares to enter Israel.
The Israel Tax Authority announced Thursday it has arrested a Beit Shemesh resident suspected of operating an unlicensed taxi dispatch service and failing to report income estimated at millions of shekels.
The National Unit for Combating Crime (Yahalom) is investigating the suspect, identified only as D.N., for allegedly managing an unlicensed driver service ("drivers") without reporting income.
Investigators examined records from the "Drivebot" app, used for ride-hailing and delivery services, and the suspect's bank accounts. They found discrepancies indicating unreported business income.
According to documentation, the suspect received over 1.4 million shekels in payments during 2024-2025. Assuming the suspect collected a 10% commission on rides, investigators estimate the station's total turnover during that period reached tens of millions of shekels.
This week the investigation became public. Yahalom unit investigators conducted a search and seized evidence of operating an unlicensed taxi service. They confiscated mobile devices, a laptop and documents indicating extensive activity both as a driver and manager, strengthening evidence of tax offenses.
The investigation was opened based on information gathered during a nationwide operation against the "drivers" phenomenon conducted by the Tax Authority last May.
The suspect was brought Wednesday before a magistrate's court in Rishon Lezion, which ordered his release under restrictive conditions. The investigation continues.
The announcement comes as Uber prepares to enter the Israeli market.