Regev opens door for Uber in Israel without public process, professional input

Transportation Minister Miri Regev bypassed ministry experts and regulators in a move critics say is politically driven and undermines Israel’s licensed taxi system.

Transportation Minister Miri Regev has approved the entry of the Uber ride-hailing app into Israel, allowing any private car owner to transport passengers for payment.

The decision was made without a public process and in defiance of recommendations by professionals in the Transportation Ministry.

Regev did not consult key authorities before making the move. The Insurance Commissioner, who is responsible for determining premiums for such drivers, was not involved in this decision. At present, taxi drivers pay insurance premiums four times higher than those paid by private car owners.

Under current law, only licensed taxi drivers with permits and green number plates are allowed to transport paying passengers at regulated fares. Approximately 30,000 drivers in Israel operate under these conditions.

During his time as transportation minister, Israel Katz allowed Uber to function solely as a taxi-hailing service, barring private drivers from the platform. His policy followed ministry guidance based on international findings, which indicated that services like Uber contribute to increased road congestion and divert passengers from public transport. This outcome contradicts the state’s objective of encouraging the use of buses and trains to reduce car dependency.

What has changed since then is the growing participation of private drivers in the ultra-Orthodox sector who have entered the passenger transport market. These drivers operate without licenses, insurance, or regulatory oversight.

Their presence has undercut licensed taxi drivers, who are required to complete training courses, pass tests, and invest about NIS 200,000 to obtain a certification. Over the past year, the Tax Authority has begun enforcing regulations against such drivers, who also fail to report their earnings. This has led to mounting political pressure from ultra-Orthodox lawmakers to formalize their activities.

While Regev is expected to present the move as part of a broader effort to reduce the cost of living, critics argue the primary motivation is political. The policy shift comes as the government seeks to demonstrate action on economic issues ahead of the next election.

Despite the scope of the change, Regev has yet to involve professionals from the Transportation, Justice, Finance, or Public Security ministries. Regulations for the new policy have not been drafted. It also remains unclear whether and how the state plans to compensate taxi drivers who invested heavily in order to meet official requirements.

Taxi Driver’s Association responds

Yehuda Bar-Or, chairman of the Taxi Drivers’ Association, warned that the move could lead to legal action.

“This makes no sense and will not happen,” Bar-Or said. “The state would have to pay NIS 7.5 billion to buy back the green numbers we were required to purchase. I do not understand how they want to allow people who have never received police clearance to transport passengers, including at night and near sensitive border areas. Everywhere Uber operates, congestion rises because the cars are driving empty half the time. We will oppose this by every means, including legal action.”

Zohar Golan, chairman of the Taxi Drivers’ Association within the Histadrut’s independent forum, echoed the criticism and accused Regev of using the issue for political gain.

“If you want to regulate the passenger transport sector, then change the law and create full equality for taxi drivers, who today are subject to a long list of rules and regulations, including costly and lengthy training,” Golan said. “The real question is what is hidden behind the introduction of Uber? It is clear that this is an attempt to legitimize all the illegal drivers in the ‘drivers’ phenomenon, which exists mainly in the ultra-Orthodox sector. This is the truth that Miri Regev is trying to hide. She is not suddenly pulling Uber out of thin air. She wants to find a solution for a group of potential voters and for the ultra-Orthodox political lobby ahead of the elections. Regev is not concerned about the state of public transportation but is trying to quietly legalize offenders in order to gain personal political capital.”