“All OECD countries have introduced shared transport platforms such as Uber, with the exception of three countries: Japan, Bulgaria and Israel. Israel, which has great difficulty providing public transport to its citizens with an appropriate frequency and in an appropriate way, which allows itself to stop public transport services for 28 hours each week, where the cost of living is skyrocketing – this is the country that chose not to introduce private travel services and private travel platforms and to remain and protect the old world of taxi drivers,” former Israel Competition Commissioner Adv. Michal Halperin told the Globes Infrastructures for the Future Conference held in cooperation with Bank Hapoalim.
Halperin, who supports the entry of Uber into Israel added, spoke in a discussion entitled “For and Against Uber’s Entry into Israel,” while the opponents’ position was presented by Zohar Golan, chairman of the taxi drivers’ association in the Independent Forum.
NIS 4 billion compensation
The discussion took place after Transport Minister Miri Regev’s promise that she would introduce into Israel the Uber platform, which operates in 15,000 cities in 80 countries, by the end of 2026. A previous attempt to introduce Uber to Israel last decade met opposition from taxi drivers and was halted. This time the initiative includes paying NIS 4 billion compensation to “green number” holders (taxi drivers) who will allegedly be harmed by the move.
“Our story begins in 2009 in San Francisco, where a company called Uber, a classic disruptor, began working. Uber is an example of a platform that took and used a cellular network with relatively uncomplicated technology and high communication capabilities, and established, like similar companies, networks that connect drivers and consumers who need rides,” said Halperin. “This has excellent advantages for drivers who want to use their cars to earn money and, of course, for consumers. Consumers can enjoy a platform that is very transparent, very easy to use, very available at all times. You know in how long, at what price, what the rating of the driver you are riding with is. Everything is available to you.”
The more users there are, the better the platform becomes
Halperin, of course, also addressed taxi fares and noted, “The platform offers an abundance of drivers that we didn’t know existed and, most importantly, greatly reduces the fares of private trips”
“All this beauty,” she continued, “rides on what are called network effects. In this platform, the more users there are, the better it becomes. The more consumers who use the platform, the more attractive it is to drivers. The more drivers there are, the more efficient it is for consumers and the more consumers want to use it. And so, this thing grew like mushrooms after the rain and swept city after city after city.”
Halperin explained that at the beginning of her remarks she called the shared transportation platforms “disruptive” for one reason only: the disruption caused to taxi drivers. “Taxi drivers and the old taxi world have been completely disrupted and are therefore left behind,” she said, but clarified that this should not be seen as justification for stopping progress: “What we have here is a new technology and, in contrast, a traditional world of taxi drivers. These platforms do not require excavations in the ground, they do not require a complex engineering project, they do not require multi-year planning of a decade ahead, and they do not require financial support. They can literally be introduced in the blink of an eye and improve the experience of the Israeli consumer, and their ability to complement public transport through private travel as well. Therefore, the only explanation we have left for why they are not here yet is the need to protect taxi drivers.”
Halperin added that over the years, the number of taxis has decreased in proportion to the population and the public does not receive the proper service in this context. “Anyone who stood looking for a taxi this morning on a rainy day has surely shared this experience of a taxi shortage,” she said, adding that “today a taxi license or ‘green number’ costs NIS 280,000 in the State of Israel. It is not clear why one has to pay so much money. We have an alliance between the State of Israel and taxi drivers – the State of Israel ensures that a ‘green number’ license will cost a lot of money for it to benefit from, and taxi drivers benefit from the fact that not many new taxi drivers enter, and also, to be on the safe side, do not benefit from the shared platforms.”
According to her, there is hope that this situation will change soon following the bill that passed the Knesset plenum last week in a preliminary reading – the bill for shared transport, which is intended to allow companies such as Uber to enter Israel. In addition to Uber, the bill may open the market to other international platforms such as Bolt, DiDi and Grab. Although the Ministries of Transport and Finance support the move, it has encountered fierce opposition from the powerful lobby of taxi drivers and many professional bodies. “Maybe finally, after a delay of 15 years, the bill will bring about a correction,” she concluded.
“Regulation on taxi drivers is severe and burdensome”
In contrast, Zohar Golan, chairman of the taxi drivers’ association in the Independent Forum, presented a less rosy picture on the future of transport with the entry of shared platforms, and spoke about the harm to taxi drivers. “A taxi driver is not transparent. You get in and out of the taxi and don’t remember what the driver looks like. We go through a long process, a long course that will qualify us to be a public transport driver. We want to cheapen the profession, so that anyone can transport passengers, but don’t forget that behind your transportation we have to take care not only of our income, but also of transporting you from place to place,” he said.
According to him, the regulation on taxi drivers is severe and burdensome. “There is regulation by four government ministries. Before the drivers receive certification,” he said, describing a lengthy process that a driver who wants to receive a public driving license goes through, starting with numerous medical approvals, confirmation of no criminal record, and ending with psychological and psychotechnical tests by the Ministry of Transport. From there, a bureaucratic process of approvals and forms, demanding studies and the issuance of a new license and test, and there is also an exam set by the Ministry of Economy and Industry.. “After the exam by the Ministry of Economy, you receive a professional certificate from the state, a final certificate that confirms that you are a professional driver. You can take everything and throw this whole procedure in the trash. This mechanism was created to ensure that anyone who drives passengers for a fee is professional, reliable, supervised, and has undergone tests and inspections,” he said.
According to him, even while working as a public transport driver, taxi drivers are constantly being checked, and all these requirements and safety mechanisms will be thrown away if shared transport is introduced to Israel. “Along the way, you are measured and controlled by the systems. Anyone who wants to drive a ‘gig’ and become an Uber driver can support what the lady (Michal Halperin) said and pass the law quickly. This is not just about a gig, but a profession that has many things behind it that are important for safety.” Golan added that introducing shared transport to Israel will not lower travel fares or cure the taxi shortage.
At the end of the discussion, a vote was held among the conference participants – for and against bringing Uber into Israel – and an absolute majority of those present in the hall voted in favor of bringing Uber into Israel.
The conference is in collaboration with Bank Hapoalim and is sponsored by Pelephone, Yes, Doral, Netivei Israel National Transport Infrastructure Company, CAF, Bazan Group, Ratio Energies, NTA Metropolitan Mass Transit, Generation Capital, and Moriah Jerusalem Development Corporation, with the participation of Israel Electric Corporation.
Published by Globes, Israel business news – en.globes.co.il – on January 29, 2026.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2026.
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