The Israeli Transportation Ministry confirmed Tuesday that Transportation Minister Miri Regev is advancing the entry of Uber into Israel's taxi market.
This is a significant move 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.
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 labor union. The arrival of a ride-sharing platform such as Uber is expected to disrupt the industry even further.
In a formal letter submitted 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.
It is worth noting that Uber has faced heavy criticism in the US and Europe over claims that it undermines the livelihoods of local taxi drivers. Protests against the company took place as early as 2016, and in 2023 Uber shut down operations in Israel, citing regulatory hurdles and the country's relatively small market.
An Uber spokesperson stated: "We have not been involved in any discussions on regulatory reform, and have no plans to launch in Israel."
