Uber Revolution: Is This the Death Blow to Israel’s Taxi Industry?
Israel approves Uber's entry for 2026 launch, potentially legalizing thousands of unofficial drivers and disrupting the traditional taxi industry.
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Transportation Minister Miri Regev has quietly approved the entry of Uber into Israel, with operations expected to launch in early 2026. The move could legalize thousands of unofficial “drivers,” many of them young Haredim, who currently provide private rides outside the law.
Uber’s entry has long been blocked by Israel’s powerful taxi lobby, but the ministry says the reform will be overseen by director general Moshe Ben Zaken to assess its economic and regulatory impact.
For over a decade, an estimated 30,000–35,000 underground drivers have operated in Israel, creating a multi-billion-shekel black market. Critics argue this reflects an overregulated taxi system, while taxi drivers warn they will be pushed out of business without compensation.
Supporters call Uber’s arrival a long-overdue modernization that will bring fairer prices and curb illegal activity. The coming months will determine whether legislation and negotiations can balance innovation with the livelihoods of Israel’s taxi industry.