On Sunday, January 18, 2026, an Israeli ministerial committee approved a draft bill that will permit shared ride‑hailing services such as Uber and Lyft to operate in the country. The approval removes a regulatory barrier that has prevented Uber from offering its services in Israel and opens a new market for the company’s mobility platform.
The draft bill still requires full parliamentary approval, including additional readings and a vote in the Knesset, before it can become law. While the committee’s endorsement is a critical first step, the bill’s passage is not guaranteed and could take several weeks or months to complete the legislative process.
Uber previously operated in Israel in a limited capacity, using licensed taxi drivers to provide a taxi‑ordering service. The company shut down its services in 2023 after regulatory challenges and competition from local platforms such as Gett and Yango. The new law will allow Uber and Lyft to launch full ride‑hailing services, potentially bringing the first large‑scale platform‑based competition to the Israeli market in more than a decade.
The bill includes a compensation framework for taxi drivers who choose to retire, with estimates of approximately 200,000 NIS per driver. The framework is designed to ease the transition for drivers who have relied on the traditional taxi model and to mitigate potential backlash from the industry.
Regulatory provisions in the draft bill cover driver vetting, passenger safety, insurance requirements, and vehicle condition monitoring. The framework aims to create a comprehensive safety and quality standard for ride‑hailing services while ensuring that drivers meet background checks and vehicle inspections before they can operate on the platform.
The approval is expected to increase competition, lower transportation costs for consumers, and create thousands of new jobs, according to Transportation Minister Miri Regev. The move is also anticipated to reduce road congestion by encouraging shared rides and to modernize Israel’s transportation system. For Uber, the approval expands its global footprint and opens a new revenue stream in a previously closed market.
Minister Regev described the approval as a “historic step” that will dismantle old monopolies, reduce congestion, and open the market to real competition that will lower the cost of living. She emphasized the government’s vision of a smart, accessible, and affordable transportation future for Israel.
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