Where have the shared taxis gone?

A government reform to expand shared taxis in Israel ended with a 93% collapse in their number, from 844 in 2017 to just 59 in 2023, according to a State Comptroller report. The tenders set low prices that did not cover rising costs of fuel, insurance, and garage maintenance, causing operators to withdraw.

A government reform aimed at expanding shared taxi services in Israel ended with a 93% collapse in their number, from 844 in 2017 to just 59 in 2023, according to a State Comptroller report from November 2024. In 2005, their number stood at 2,289. The reform, anchored in 2018, set a target to increase the fleet to 2,500 taxis through competitive tenders, but in practice operators were selected in only 10 of 24 planned geographic clusters, and full operations began in only four of them – all in the Tel Aviv and central region. Meital Lehavi, deputy mayor of Tel Aviv, attributes the decline to repeated extensions of temporary contracts that prevented drivers from purchasing new equipment. Uri David Hai, CEO of Odalia Taxis, argues that the ride prices in the tenders were set too low relative to actual costs – fuel nearly tripled, insurance premiums doubled, and garage labor costs doubled – and that operators were forced to cease operations or faced severe financial difficulties. The State Comptroller determined that the reform failed and did not achieve its goals.

Where have the shared taxis gone?