Uber is a "multinational transportation network company", which is basically just an app. People sign up to be drivers, driving their own private cars, and other people submit ride requests via the app. Uber drivers can respond to the request and take the ride, for pay. Essentially, private people are doing the jobs of taxi drivers for less money (supposedly), and without the licensing and insurance fees.

Uber has not yet been approved to function in Israel.

Not yet, but that might soon change.

MK Amir Ohana (Likud) has proposed a law that would pave the way for Uber to start operating in Israel. Ohana has proposed that cooperative transportation should be legalized, via which any person would be allowed to collect passengers and drive them in his or her own private car with payment processed via an Internet site or smartphone app.

Ohana explained that it is inconceivable that, in our powerhouse of a hi-tech center, our public transportation industry should continue to function exactly as it has since the foundation of the State. The time has come to join the 400 cities across the world in which this online ridesharing platform functions, to the benefit of the public.

Opening the roads to Uber is expected to bring public transportation costs down by 30%, along with lowering pollution (I am not sure how), lessening traffic accidents, and increasing transportation availability in places and at times where it is not currently efficient.

As part of the law, the taxi drivers will be offered compensation for their expected decrease in revenue. With every ride taken via Uber (or any other ridesharing platform), a fee will be transmitted to some sort of fund that would be established for this purpose. Ohana says the current compensation offer is the best that has ever been offered, anywhere, and with the advance of smart-car technology and driverless cars, any future offers of compensation will only continually decrease in generosity.

Another benefit mentioned is additional income options to partially employed and under-employed people.
sources: NRG, Israel Hayom, Ynet, and all the others

I think the normal drivers license in Israel prohibits a driver from driving for pay. A special license is needed for that, if I am not mistaken. Either the law will have to address that, or this won't be considered "for pay" as no payment will be handed over, as it is handled via the app.

Anything that advances technology and helps people overall is a good thing and should be encouraged.

And maybe we will even see celebrities having fun with this, like when Shaq drove for Lfyt, or when Kris Bryant did or the many others....