The Knesset plenum on Wednesday passed in first reading the so-called “Uber law,” introduced by Likud lawmakers Moshe Passal and Dan Illouz and Blue and White legislator Eitan Ginzburg in cooperation with the Transport Ministry.
The legislation would allow for the first time in Israel paid transportation services in private vehicles via apps and is intended to lower the cost of living, promote competition and align with the technological standard in the Western world.
In January, the Ministerial Committee for Legislation approved the draft bill for government backing.
The proposal will now return to the Knesset Economic Affairs Committee for preparation ahead of its second and third (final) readings.
Under the legislation, drivers would be required to have at least four years of driving experience, undergo specialized training on traffic safety, the prevention of harassment and discrimination, and accessibility for people with disabilities, and provide a medical certificate from a physician familiar with his or her medical history, as well as pass criminal and security background checks.
The service would be operated using vehicles no more than eight years old and equipped with up-to-date safety systems.
Fares would be displayed to customers in advance, and riders would be able to cancel their trip free of charge within three minutes of the driver confirming the trip.
Apps will be required to provide real-time GPS tracking, display the driver’s photo and rating, and comply with strict cybersecurity and privacy standards.
Taxi drivers who decide to give up their cab licenses will be compensated. Taxi drivers will remain the only ones allowed to pick up casual passengers from the street and will retain exclusivity to drive on public transportation routes.
Passal told JNS: “This is a joint initiative of the coalition and the opposition. We want to move it forward, and it is ready.”
Since the start of “Operation Roaring Lion,” the joint Israeli-U.S. campaign against Iran that began on Feb. 28, the Knesset has shifted its focus to war-related matters. Still, Passal stressed that legislative work continues. “We will not give that satisfaction to the Iranian regime,” he said.
As the bill advances through the legislative process, Passal said he expects Uber and other ride-sharing companies to begin operating in Israel. “‘Uber’ is just a code name,” he said. “There is interest from Bolt, Lyft and Zulu, and Israeli apps are also interested. When there is competition, the public benefits—and that is our goal.”
Passal indicated that Uber may also consider launching Uber Eats, introducing competition to Wolt, the dominant player in Israel’s food-delivery market.
“The more ride-sharing there is, the more efficient transportation becomes and the more reasonable prices are,” he said. “This model already exists in 70 or 80 countries—everyone understands it. I am glad to be leading it.”
Moments of consensus
Ginzburg told JNS that the legislation had already passed the Economic Affairs Committee before the war and was cleared for a plenum vote at that time.
“There are moments of consensus. If there are laws we can pass together, even during wartime, then we should,” he said. “The ‘Uber law’ is beneficial for citizens, and we have also passed national insurance legislation for [IDF] reservists, so we are addressing issues beyond the war.”
“With this law, we demonstrated—together with Likud lawmakers—that it is possible to set aside divisions when the initiative is right and supported by both the transport and finance ministers,” the Blue and White MK added. “This is a free-market, forward-looking reform that will allow anyone who chooses to use the service to save money.”
Ginzburg said the primary goal of the legislation is to open one of Israel’s most centralized markets to competition.
“Israelis land in any American or European city, pass through border control, leave the airport, and order a car with the press of a button—seeing who the driver is, their rating, the type of car and the price,” he said. “Then they return to Ben-Gurion Airport and wait in long lines for a taxi, with no real alternative, since trains do not reach every destination.”
“Even for trips within and between cities, it is difficult to find a taxi to reach a specific destination, and when one is available, it is often very expensive,” he added. “Ordering a taxi has become a privilege. Many people cannot afford it, even though they may need it most.”
Ginzburg said the “Uber Law” could represent a consumer revolution in Israel on a scale not seen since the cellular market reform of 2011-12.
“This is one of the most powerful tools to address the high cost of living and improve quality of life,” he said. “It creates a new, competitive market, one that is carefully regulated, smart and efficient. We have learned from other countries where such models have succeeded.”
Previous Uber operations in Israel
Uber previously launched in Israel in August 2014, initially offering a taxi-hailing service through its app that connected passengers with licensed taxis. This was intended to compete with local services like Gett.
Around late 2016, Uber began experimenting with pilots such as Uber Night and Uber Day, which allowed private drivers (not traditional taxi drivers) to carry passengers, labeling what riders paid as “reimbursements” to try to work around regulations.
These services ran mostly in Tel Aviv and mainly on weekends.
In November 2017, the Tel Aviv District Court barred Uber from operating its ride-sharing services using private drivers because they lacked proper taxi licenses and insurance.
Uber faced legal pressure and an indictment for operating without a license from the Transport Ministry.
After the court decision, Uber was effectively restricted from offering broader ride-sharing with private cars under the classic UberX model; it continued mainly as an app for ordering licensed taxis, but uptake was limited.
The COVID pandemic reduced activity sharply, with Uber’s presence in Israel shrinking near to zero before a renewed push.
In July 2022, Uber re-entered the market by partnering with a network of licensed Israeli taxis rather than private drivers—essentially becoming a platform to hail metered taxis via its app in cities such as Tel Aviv and Jerusalem.
In June 2023, Uber announced it would end its taxi-hailing service in Israel entirely, citing regulatory uncertainty and limited market share against competitors like Gett and Yango.
