Israel Committee Approves Bill to Permit Uber and Lyft

• The reform would regulate 'technology-based transportation operators' and includes strict safety requirements, driver screening, insurance coverage, and vehicle oversight provisions
• Transportation Minister Miri Regev called the law a 'historic step' to dismantle outdated monopolies and create thousands of jobs through real market competition
• Uber previously operated in Israel only as a traditional taxi service before shutting down in 2023, and the existing taxi industry opposes the entry of ride-hailing companies

Summary: Israel Approves Bill to Allow Uber and Lyft Operations

An Israeli ministerial committee approved legislation on January 18 that would permit ride-hailing services Uber (UBER.N) and Lyft to operate in the country. The bill, promoted by the Transportation Ministry, still requires full parliamentary approval before becoming law.

Key Details

The reform would regulate "technology-based transportation operators" using globally proven business models, allowing smart applications to connect private drivers with passengers. Transportation Minister Miri Regev called it "a historic step that will dismantle outdated monopolies, create thousands of new jobs, and open the market to real competition."

Background

Uber previously operated in Israel only as a traditional taxi service before shutting down in 2023. The existing taxi industry opposes the entry of these ride-hailing platforms into the Israeli market.

Market Implications

The ministry expects this legislation to:

• Significantly boost transportation supply
• Improve service availability during peak times and weekends
• Lead to lower fares for consumers
• Create thousands of new employment opportunities

Regulatory Framework

The proposed law includes comprehensive safety measures:

• Strict driver screening requirements
• Mandatory insurance coverage
• Vehicle condition oversight
• Support mechanisms for the existing taxi industry to ensure fair transition

The ministry emphasized that such services operate successfully in dozens of countries globally, stating "the time has come for them to operate in Israel as well." This development represents a potential market expansion opportunity for Uber and Lyft in the Middle East region, pending final parliamentary approval.