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Israel Backs Ride-Hailing Bill, Paving Path for Uber and Lyft

Ministers approved a regulated framework for app-based rides that now moves to the Knesset.

Overview

  • The Ministerial Committee for Legislation approved the Shared Transportation Law draft on Jan. 18, enabling app-based operators to link private drivers with passengers.
  • The proposal sets safety rules that include driver vetting, insurance requirements, and vehicle oversight, alongside a transition support mechanism for taxi drivers.
  • Transportation officials say the reform aims to expand supply, improve service during peak times and weekends, and help lower fares.
  • The bill, submitted by MKs Eitan Ginsburg and Moshe Passal, is slated for a preliminary Knesset vote as early as next week.
  • Uber previously ran only a taxi-based service in Israel and exited in 2023, and the taxi industry opposes opening the market to ride-hailing platforms.