“I assume that all of you know both at the national and personal level, but EGGed is much more,” Rikin, CEO of EGGed told Globes Infrastructure for the future conference.
Rikin described how the company, which was established in 1933, described more than 80 years as a monopoly. He said: “There were better times and good times, but we were a monopoly and we got government subsidies.” In 2015, EGGed underwent a change when the government decided to simplify the cost of costs significantly.
Another government decision is the past decade is that EGGed will need to change its cooperative structure to the business company structure and sell 50 % of its shares to a private institution. Egged was needed to transfer some of its activities to external operators. “Think about how everyone who was a member of the association needs to prepare for a major change with a lot of competition,” said Reclin.
Riklin described the change that has occurred in EGGED since then. “With regard to efficiency, the percentage of the largest and most expensive employees in the workforce decreased from 63 % in 2015 to 26 % in 2024. During this period, more than 2,500 employees retired.”
In addition, the percentage of EGGed electric buses during the same period increased from 2 % of the bus fleet in 2021 to 24 % in 2025. Riklin promised: “By the end of the year, we will have 1,104 electric buses, and the largest fleet in the Middle East and Europe .
Expanding new markets
Reclin also talked about EGGed’s expansion with new markets. EGGed won the tend to the Tel Aviv Light Rail line, and the company that runs the line – Tevel – owned by EGGED. Ricoin says, since the launch of the line, the company provides high -quality data, including 98 % availability.
EGGed also established subsidiary companies, including Derech Egged, which transports six million passengers in Jerusalem, and EGGED Real Estate, which leads the acquisition deals and is responsible for developing the real estate owned by the company.
At the international level, Riklin provided the data in which EGGed achieved revenues abroad, at a value of one billion NIS and in 2024 this threshold actually exceeded in the first quarter. Rikin explains that 28 % of the kilometers traveling in Europe.
The EGGED guest network has witnessed a 300 % increase in revenue in the past five years, while meeting the company’s private needs, but also outside customers. Egged Tours also entered new areas of activity with record revenues in 2024.
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Riklin described the structural change that EGGED has undergone, which turned it into a commercial company. Keystone (Tase: KSTN) won the competitive process that was held as part of the change and gained 60 % of the eggs in the company’s 5 billion New evaluation. Keystone is expected to increase its shares to 75 %. “During this time, we maintained a high level of service – including the first position in the Ministry of Transport Service Index for the first half of 2024 with a score of 83.85.”
These dramatic changes were put in the test on October 7. “After that we received an order to operate public transport on an equal footing. On Saturday, more than 1,300 drivers appeared to help transport combat units and evacuate the residents.” Reclin added that during the war, EGGED provided 1850 soldiers transport services, and was transferred to Ben Gurion Airport, And other services. “All this happened when in places like Kiryat Shmeuna, things were performed under the fire.”
The acquired experience in the war led to conclusions. “We have then learned that Israel has unique needs – as well as military, nutritional and medical security, it also needs the doctrine of operations, the ability to respond to the demands of the Ministry of Defense with job continuity – and everything must be done after one phone call.
Full Disclosure: The conference was sponsored by Ackerstein, CAF, ISRAEL RAILWAYS, Netivei ISRAEL, EGGED and Ashdod Port and Mekorot.
It was published by Globes, Israel Business News – En.globles.co.il – on February 3, 2025.
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