Revolution on the Roads
Uber is Coming: The Major Law Just Passed to End the Israeli Taxi Monopoly
A breakthrough ministerial decision has paved the way for international ride-hailing services like Uber to finally enter the Israeli market, promising cheaper fares and shorter wait times.
The Israeli transportation landscape is on the verge of its most significant transformation in decades following a decisive move by the Ministerial Committee for Legislation. On Sunday, ministers approved private bills aimed at opening the market to competition through paid shared transportation services, a model popularized globally by companies like Uber and Lyft. This legislative push is a rare joint effort between coalition and opposition members, driven by a shared goal to lower the cost of living and solve the chronic shortage of available taxis in Israeli cities. With the full backing of the Ministry of Transport and the Ministry of Finance, the reform is set to reach the Knesset floor for a preliminary vote as early as this Wednesday.
Breaking the Monopoly and Setting Standards
The proposed legislation seeks to amend the existing Traffic Ordinance to permit private shared rides for a fee, while establishing a strict regulatory framework to ensure public safety. The law will dictate specific requirements for drivers, including a minimum age, a required level of driving experience, and specialized insurance policies. It also mandates full price transparency and a rating system for drivers to protect consumers. Member of Knesset Eitan Ginzburg, a primary initiator of the bill, noted that Israelis have paid exorbitant prices for too long. "It’s time for the Israeli citizen to enjoy advanced and cheap transportation like in the rest of the world," Ginzburg stated, adding that "Uber is just a code name," as the law will allow a variety of international companies currently blocked from operating in the country to enter the market.
One of the most innovative aspects of the bill is how it addresses the long standing opposition from traditional taxi drivers. To prevent financial harm to veteran drivers who invested in expensive licenses, the law creates a reimbursement fund. This fund, financed by a percentage of the profits from the new shared transport companies, will allow taxi owners to return their licenses to the state in exchange for fair financial compensation. This mechanism ensures that the market opens to healthy competition without abandoning the thousands of drivers who have formed the backbone of the industry for years.
A Unified Fight Against the Cost of Living
The political support for the "Uber Law" is remarkably broad. MK Dan Illouz of the Likud, who has advocated for this change since his first day in the Knesset, will see his veteran bill merged into the new approved proposal. Illouz described the move as a "critical step in the war on the cost of living" that puts the average citizen and their wallet at the center of policy. He extended his gratitude to Transportation Minister Miri Regev for her leadership and determination in pushing the issue through the government.
Lawmakers are also looking toward the future of technology on Israeli roads. MK Moshe Passel pointed out that in most of the Western world, citizens travel using shared apps at very low prices, and progress cannot be stopped. He noted that in parts of the United States, advanced solutions like driverless taxis are already becoming a reality. The goal of the new legislation is to bring this level of progress to Israel while maintaining a balance that allows licensed taxis to continue operating alongside the new apps, potentially even integrating into them to get the best of both worlds.