The reform was decided on during a meeting between Transportation Minister Miri Regev, taxi drivers and taxi application companies.
The new meter will allow commuters to receive a discount on fees for shared taxi rides. As other commuters join the ride, the meter will add additional discounts to the ride, reaching between 20% to 50% off.
The meter is already being used in test rides and efforts are being made to bring it into use at the beginning of 2021. It is unclear how shared taxi rides will work with the ongoing coronavirus pandemic, or whether the reform may have to be delayed if cases spike.
"For the first time we are making a real collaborative move between taxis and app companies," said Regev, according to N12. "I hope everyone joins in this move. It has not been easy to balance the desire to maintain taxi drivers and their livelihoods and, on the other hand, to take care of the Israeli public and consumer. This is a WIN WIN move and I believe we will see in it a blessing which encourages the public to continue to move by public and cooperative transportation."