Uber Technologies, a US transportation and service provider, announced on Sunday morning that it is returning to Israel after several years of unsuccessfully attempting to break into the Israeli market.
During its initial phase of operations, Uber will operate using licensed taxis and without offering the option of what is known as Uber X, allowing private individuals to double as taxi drivers.
The company noted that unlike its competitors, it will charge taxi drivers a fixed monthly fee for using the Uber app and offers drivers commission routes of only three to eight percent for routes, with an emphasis on reducing the fees it charges to drivers who provide passengers with a high level of service.
According to Uber, thousands of drivers have already been recruited, mainly in Gush Dan and Jerusalem, as well as those servicing Ben Gurion Airport.
Goni Noy, CEO of Uber Israel, said that, "Today, Uber is opening a new chapter in Israel in partnership with taxis, which can and should be a real alternative to traveling in a private car. We will provide an international level of service to passengers and will offer the best prices in the market to drivers, so that taxi drivers will be able to earn a decent living and passengers will benefit from higher availability.
"Together with the Ministry of Transportation and taxi drivers, we will be key partners in combating congestion on the country's roads," he added. "We intend to harness Uber's technology to increase the number of people choosing the option of shared taxis, especially during peak hours, to help ease road congestion and reduce the use of private cars."
Meanwhile, the Transportation Ministry is planning to begin implementing its plan to reduce car journeys by one million per day. In the coming weeks, work will begin on Highway 1 to dedicate a lane on the Jerusalem-Tel Aviv road to public transportation, which will include shared taxis.