The Knesset on Tuesday approved in a preliminary reading a bill that would advance regulation to allow ride-hailing services such as Uber and Lyft to operate in Israel.

The bill passed by a vote of 37-2, receiving broad support in a rare show of bipartisan cooperation. It was co-sponsored by Blue and White MK Eitan Ginzburg and Likud MK Moshe Passal, and drew near-unanimous backing from lawmakers across the political spectrum.

The so-called “Uber bill” would pave the way for shared ride-hailing companies to offer services through mobile applications that connect private drivers with passengers, similar to how the platforms operate in the United States and other countries.

Following the preliminary vote, the legislation will move to the Knesset House Committee, which will decide which committee will oversee the bill’s advancement. The proposal must still pass additional readings before it can become law.

The Transportation Ministry has said the reform is expected to significantly improve transportation options nationwide, increase service availability, and lower fares for consumers. However, the move is also expected to severely disrupt Israel’s traditional taxi industry, which for years has successfully lobbied to block Uber and similar services from entering the market.

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