Court halts Uber’s trial program in Israel

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TEL AVIV (Reuters) – A court in Israel ordered Uber on Monday to halt a trial program in the Tel Aviv area that the U.S. ride-hailing company had hoped would pave the way for its full operations in the country.

The injunction against the Uber car-pooling app followed complaints by Israel’s Transportation Ministry, Taxi Driver Union and a rival ride-hailing company about the U.S. company’s use of drivers who lacked proper business licenses and insurance.

Uber had argued that its app, which began as a night-time service and expanded to day-time operation this month, should be categorized differently as passengers’ payment was designed to cover car-maintenance expenses and not to profit the drivers.

The Tel Aviv District Court injunction will go into effect on Wednesday, according the ruling. It quoted Uber’s lawyer as agreeing to “a permanent stay on everything to do with Uber Night and Uber Day operations in their current format”.

A spokeswoman for Uber in Israel did not immediately respond to a request for comment.