Israel
Uber poised to return to Israel as Knesset vote set
Rideshare services have been largely absent from the Jewish state since 2023, but a new bill looks set to clear away some of the regulatory hurdles
January 19, 2026 14:13
Rideshare services have been largely absent from the Jewish state since 2023, but a new bill looks set to clear away some of the regulatory hurdles
January 19, 2026 14:13Uber looks set to return to Israel for the first time in two years, with the Knesset due to vote on a new bill allowing the comeback next week.
The company, as well as other rideshare services like Lyft, have been largely absent from the Israeli market after announcing it would pull out due to regulatory challenges – particularly the restriction of its hiring pool to licensed taxi drivers only.
Fierce competition from taxi-hailing services Gett and Yango also reportedly played a role in the firm’s decision.
Issues around passenger safety, driver screening and vehicle maintenance, as well as intense lobbying from the traditional taxi industry, caused a political stalemate in 2023 and the issue was placed on the back burner following the outbreak of the Gaza War.
Now, though, a bill backed by MKs Eitan Ginzburg (Blue and White) and Moshe Passal (Likud), which seeks to address these concerns, is progressing through the legislative process.
If passed, the legislation will bring in a raft of new safety, insurance and vetting regulations, which would allow Uber to operate with minimal hindrance in Israel.
It will also implement a new compensation mechanism for traditional cab drivers, in a bid to stifle some of the opposition within the sector.
Importantly, the push to bring rideshare services back to the market has won the support of Transport Minister Miri Regev, who said: “Our vision is to move Israel into an era of smart, accessible, and affordable transportation.
"Approval of the bill is a historic step that will dismantle old monopolies, reduce road congestion, create thousands of new jobs, and open the market to real competition that will lower the cost of living.”
The draft bill was approved on Sunday by the Ministerial Committee for Legislation, meaning it will now proceed to the Knesset. It will have its first reading next week, but is not expected to be met with overwhelming opposition.
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