Uber faces a legal challenge in Israel, adding to the list of places where it is under scrutiny, after the country alleged unauthorized drivers were illegally paid using its network for a new carpooling app the company is piloting.

Israel’s Transportation Ministry said on Wednesday an undercover investigation had found Uber recruited private drivers to operate the network without the necessary licenses, and that Uber took 25 percent of the cost of each ride.

Uber, which said it was operating within Israeli rules, is running a pilot of UberNight in Tel Aviv where it says passengers only pay to help cover the expense of the ride. Google’s Waze set up a similar service for commuters in 2015.

Forwarding the News

Thoughtful, balanced reporting from the Forward and around the web, bringing you updated news and analysis of the crisis each day.

Terms(Required)

I agree to the Forward's Terms of Service and Privacy Policy

Email(Required)

But Israeli regulations, in a bid to protect taxi drivers’ income, forbid non-authorized drivers from earning money while ferrying passengers around which means services like Uber and Gett are only allowed to use licensed taxi drivers.

Uber and six private drivers now face charges for not having proper business license, the proper operating license and transporting paying passengers, the ministry said.

But Uber said in response that its pilot program was created in accordance with Israeli regulation and was similar to other applications that operate with the goal of covering costs.

A message from our CEO & publisher Rachel Fishman Feddersen

I hope you appreciated this article. Before you go, I’d like to ask you to please support the Forward’s award-winning, nonprofit journalism during this critical time.

Now more than ever, American Jews need independent news they can trust, with reporting driven by truth, not ideology. We serve you, not any ideological agenda.

At a time when other newsrooms are closing or cutting back, the Forward has removed its paywall and invested additional resources to report on the ground from Israel and around the U.S. on the impact of the war, rising antisemitism and the protests on college campuses.

Readers like you make it all possible. Support our work by becoming a Forward Member and connect with our journalism and your community.

Make a gift of any size and become a Forward member today. You’ll support our mission to tell the American Jewish story fully and fairly.

—  Rachel Fishman Feddersen, Publisher and CEO

Join our mission to tell the Jewish story fully and fairly.

$36 $500

$120 $180 Other amount