A bill to permit Uber and Lyft in Israel has been approved by a committee
A proposal that would permit shared ride-hailing services like Uber and Lyft to operate in Israel was approved by an Israeli ministerial committee on Sunday in an effort to reduce the cost of taxis.
The Transportation Ministry is pushing a reform that would allow and regulate “technology-based transportation operators” following models that have been successfully implemented around the world. The proposal still need complete parliamentary approval.
The ministry pointed out that businesses like Uber (UBER.N) and Lyft (LYFT.O) will be able to provide services through intelligent apps that link passengers and private drivers thanks to the Shared Transportation Law, which was authorized by the Ministerial Committee for Legislation.
It stated that the action is anticipated to result in lower fares, better service availability on weekends and during peak hours, and greatly increase the supply of transportation.
These services are available in dozens of nations worldwide, the statement continued, “and the time has come for them to operate in Israel as well.”
In order to guarantee a smooth transition, the law incorporates stringent safety regulations, driver screening, insurance coverage, and vehicle condition monitoring. It also provides a support system for the current taxi business.
Uber only ran as a regular taxi service in Israel for a short time before closing its doors in 2023. The taxi industry is against Uber and other similar businesses operating in Israel.
Transportation Minister Miri Regev described the new law as “a historic step that will dismantle outdated monopolies, create thousands of new jobs, and open the market to real competition for the benefit of the public.”
The reform of shared rides, she said, would help cut down on private vehicles, ease traffic, “and give every citizen the ability to get around easily and at a fair price.”
