Court orders Uber Israel to halt services

Uber

The Tel Aviv District Court has ordered Uber Israel to stop its "ridesharing" services within 48 hours.

The Tel Aviv District Court has ordered Uber Israel to halt its UberDAY and UberNIGHT taxi services within 48 hours following an appeal by the Israel Taxi Drivers Association and the Gett taxi hailing app company.

At the beginning of November, Uber Israel began operating its UberDAY ridesharing service in Tel Aviv and the neighboring cities of Ramat Gan and Givatayim with journeys undertaken to Herzliya in the north and Bat Yam in the south. Since October 2016, Uber Israel had been operating its UberNIGHT service in Greater Tel Aviv. The service had severe restrictions on the amount of rides each driver was able to provide so that earnings would be capped to cover car maintenance costs as defined by the Israel Tax Authority.

However, Judge Eitan Orenstein found that Uber Israel did not meet the criterion for ridesharing by which drivers simply cover their costs for a journey. This also raised the issue of appropriate insurance and the court was not convinced by Uber Israel's assurances that policies were being negotiated.

The Ministry of Transport had also sued Uber Israel for providing a service, which in its opinion is illegal. Judge Eitan Orenstein was critical of the Attorney General for not having expressed a position on the matter.

Published by Globes [online], Israel business news - www.globes-online.com - on November 27, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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