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The Tel Aviv District Court said the US-based company could not be allowed to operate as the company is given 48 hours to halt its Uber Day and Uber Night services, which offer low fare rides through a car-pooling app, Xinhua news agency reported.
The court order will become effective on Wednesday at 10 am.
The verdict halted a pilot programme that Uber has been running in Tel Aviv over the past months through which the company hopes it could expand service to the rest of the country.
The court ruling came after objections by Israel's Ministry of Transportation, the Taxi Driver Union and GetTexi, a rival app-based company over Uber's use of non-professional drivers who lack business licenses and insurances.