Israel Ministry Wants to Introduce Uber, Lyft App Services

An Israeli ministerial committee has approved a draft law that would legalize the operation of shared ride-hailing platforms such as Uber and Lyft nationwide.

The approval came from the Ministerial Committee for Legislation and forms part of a wider reform agenda led by Israel’s Transportation Ministry, which aims to establish a clear regulatory framework for technology-driven transport services that connect private drivers with passengers through smartphone apps.

Although the committee’s decision is an important step forward, it does not yet turn the proposal into law. The draft legislation must still pass through the Knesset, where it will undergo several parliamentary readings and votes before it can be enacted. Even so, clearing this procedural stage signals strong political support for opening the market to ride-hailing platforms.

The bill highlights the need for better availability during peak commuting hours and weekends, as well as the high taxi tariffs that many residents and tourists view as costly and restrictive due to limited supply.

Israel has had a complicated relationship with ride-hailing services. Uber previously operated only as a conventional taxi dispatch platform rather than a true ride-hailing service and ultimately left the market in 2023. Regulatory barriers and sustained opposition from the taxi industry made broader operations unviable.

Under the proposed framework, companies would be allowed to offer more flexible shared-ride and app-based services. This change could translate into lower fares, quicker pickup times, and improved access to transportation, particularly in neighborhoods where taxis are hard to find.

Uber and Lyft recently announced separate partnerships with Baidu, a Chinese technology company. These collaborations aim to launch robotaxi pilot programs in London during the first half of 2026. The pilots will use Baidu’s Apollo Go RT6 electric vehicles and represent a significant step toward scaling autonomous ride-hailing services across Europe.