The ride-hailing app pulled out of Israel in 2023 due to regulatory issues
September 17, 2025 09:33
Uber is poised to re-enter the Israeli market after shutting down operations there in 2023, a move that is likely to prompt a backlash from the country’s taxi drivers.
Transport minister Miri Regev is advancing the entry of Uber into the Israeli market, with the plan to launch the service in the first quarter of 2026, the Israeli Transportation Ministry has confirmed.
This move is expected to have a major impact on the country’s taxi industry, which may soon undergo additional changes due to proposed fare adjustments recently submitted by the ministry’s Special Rides Pricing Committee.
Until now, only licensed taxi drivers who both own a taxi and hold a special “green number” have been permitted to provide such a service, with the fares determined by government regulations.
The ministry’s proposal to revise taxi fares has already faced pushback from several groups, including the Histadrut’s Forum of Independents and Freelancers, which represents the Taxi Drivers’ Union within Israel’s national labour union. The arrival of a ride-sharing platform such as Uber is expected to disrupt the industry even further.
In a formal letter submitted on Monday, the forum argued that the assumptions used by the committee in determining the new fare structure did not accurately reflect the real costs of operating taxis. But with the imminent arrival of a US company offering online ride-hailing through a shared-service model, some question whether a renewed discussion of the fare issue is even relevant.
Uber has faced heavy criticism from taxi and minicab drivers in the the UK, across Europe and in the US, who claim the ride-hailing app undermines their livelihoods.
Originally published by Israel Hayom
To get more Israel news, click here to sign up for our free Israel Briefing newsletter.