Uber faces a legal challenge in Israel, adding to the list of places where it is under scrutiny, after the country alleged unauthorized drivers were illegally paid using its network for a new carpooling app the company is piloting.
Israel’s Transportation Ministry said on Wednesday an undercover investigation had found Uber recruited private drivers to operate the network without the necessary licenses, and that Uber took 25% of the cost of each ride.
Uber, which said it was operating within Israeli rules, is running a pilot of UberNight in Tel Aviv where it says passengers only pay to help cover the expense of the ride. Google’s Waze set up a similar service for commuters in 2015.
But Israeli regulations, in a bid to protect taxi drivers’ income, forbid non-authorized drivers from […]