US-based app Uber is shutting down its taxi delivery business in Israel. Taxi drivers working with the company received notice today that the activity will stop at the end of next week. The company, known for its ride-sharing services around the world, operates in Israel as a taxi-hailing service similar to Jet and Yango.
Uber also provides, via its app, an ordering service for electric scooters operated by Lime. This will continue after the taxi call service ends.
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Uber was launched in Israel in 2014. It ceased operations when the Covid pandemic hit, but returned at the beginning of 2022, and expanded its business in the past year. Despite this, the company decided to end it. Uber users in Israel were mainly tourists and businessmen.
The background to the decision is the lack of a regulatory horizon in Israel, the fact that Israel is a small market, and the level of service that local taxi drivers provide to international travelers. Taxis are highly regulated in Israel, and the industry is not progressive. Uber attempted to promote ride-sharing and pre-set fares, but was met with opposition from the regulator.
Uber said in a statement: “We have taken the difficult decision to suspend taxi ordering service in Israel at the same time that we stop delivery services in Italy, as we have previously done in other markets. The decision was made in accordance with Uber’s policy of focusing on the company’s main global markets. We are working to minimize harm to taxi drivers who are active on the platform and to our employees in Israel.”
Published by Globes, Israel business news – en.globes.co.il – on June 15, 2023.
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