Uber Gets Approval to Enter Israel’s Taxi Market

After years of legal battles and regulatory deadlock, Uber is set to enter Israel’s taxi market. The Transportation Ministry confirmed that a working plan is underway, aiming for an early-2026 launch, marking a dramatic shift in Israel’s approach to ride-sharing.

Transportation Minister Miri Regev presented the move as part of the fight against Israel’s high cost of living. “More competition, better tech, lower prices,” she said, brushing aside threats from taxi unions. “I’m the one who decides.”

Currently, only licensed taxis with a government-issued “green number” are permitted to carry paying passengers at state-regulated fares. Uber’s entry would break this monopoly by allowing ordinary drivers to take fares, aligning Israel with much of the Western world’s ride-sharing model.

Taxi groups are bracing for impact. Kfir Ben Zino, head of the National Taxi Drivers Association, warned: “There’s going to be a world war here.” Zohar Golan, a leader affiliated with the Histadrut, blasted the plan as an attempt to legitimize “illegal drivers.”

Israel has grappled with Uber before. In 2017, a court shut down the company’s first ride-sharing attempt. Uber pivoted to a taxi-only service in 2022, but withdrew in 2023 after failing to gain traction. The new government plan represents a decisive policy break, signaling coordinated backing within the ministry rather than a temporary experiment.

The rollout will require careful regulatory engineering. Issues such as insurance coverage, driver background checks, passenger safety, and dynamic pricing rules must be resolved under Israeli law. At the same time, the ministry’s Special Rides Pricing Committee is already examining taxi fare reforms, adding further pressure on the existing system.

The stakes are high: taxi unions are mobilizing, politicians are weighing in, and public debate is intensifying. Yet the trajectory is clear. If implemented, Uber’s arrival promises more choice and transparency for riders, new income opportunities for drivers, and an end to the long dominance of the meter.

Israelis have waited years for a real alternative in urban transport. Now, the app-based economy that reshaped cities worldwide is finally on the horizon for Jerusalem, Tel Aviv, and beyond. Share this article or subscribe to our newsletter for more updates on Israel’s economy and innovation.