Bad News for Uber?
Following the rousing and controversial move by Uber to expand its operations to Israel, the company is beginning to hire its first group of drivers. For the last 3-4 months, Uber did a “test drive,” by popularizing the use of UberX services in Israel. Clearly it was a success, and cities like Tel Aviv and Haifa are excited about the new wave of transportation to hit their metropolises.
Uber is now hiring drivers without taxi licenses in Israel. This move will surely spur competition between taxis and unlicensed taxi drivers and will exacerbate the already widening rift between ride sharing services and traditional taxi services.
Uber’s hiring process has the potential to be thwarted, because Israeli lawmakers have yet to accept the UberX service. Much to the dismay of Uber, the Israeli transportation ministry will likely refrain from approving Uber’s actions, because there is a law in Israel which stipulates that drivers without taxi licenses who accept payments must obtain a special license.
This law might prove faulty for Uber’s attempts at capitalizing on its newest Middle Eastern location.