Bus Company Tenufa Faces Sale Amid Public Transport Failures in Israel
Last week, it was revealed that Israeli bus company Tenufa is set to be sold to Metropoline amid ongoing operational and financial difficulties. Over 400 drivers at Tenufa announced a warning strike protesting severe maintenance issues and uncertainty over wage payments. According to the Ministry of Transport's semiannual report, Tenufa received the lowest performance score among all operators in the second half of 2025, with a rating of 55.81. The company has also incurred fines totaling approximately 78 million shekels by the end of 2025.
Tenufa, established in 2020, exemplifies systemic problems in Israel's public transport tender system. Critics argue that the tender process prioritizes the lowest bid (52% of scoring) over service quality, leading to the selection of weaker operators unable to invest adequately in maintenance and service. This creates challenges for contract termination and replacement, as companies are often backed by investment funds requiring financial accountability. Experts warn that frequent contract cancellations could increase sector costs and reduce competition.
Recent reforms aim to address these issues by adjusting tender criteria to weigh service quality at 65% and price at 35%, encouraging the selection of experienced operators rather than just low bidders. Additionally, incentive structures are being modified to increase rewards based on passenger numbers from 7% to 15%, while 85% remains tied to kilometers operated. Some suggest dividing tenders into smaller clusters to improve flexibility, though concerns remain about economic efficiency and passenger convenience.
While Tenufa's sale to Metropoline may resolve immediate local problems affecting thousands of passengers, broader systemic challenges in Israel's public transport sector persist. Without effective changes in tendering and operator incentives, successor companies may face similar difficulties. Tenufa did not respond to requests for comment by the publication deadline.
