No Uber in Iceland? Why renting a car is the way

"This is the way" said the Mandalorian and while Iceland has amazing beauty, one thing you won’t find in this rugged paradise? Uber. That’s right, there is no Uber in Iceland, and for most travellers, that comes as a surprise. If you're planning your adventure to the Land of Fire and Ice, here's why ride-sharing isn't part of the equation and why car rental in Iceland is not only essential but often the best travel decision you'll make.

Why is there no Uber in Iceland?

Despite its modern infrastructure and tech-savvy population, Iceland has no Uber, Lyft, or any other major ride-sharing services. There are several reasons for this:

• Strict transport regulations: Iceland has tight regulations around commercial passenger transport. Only licensed taxi drivers are allowed to operate for-profit transport services, and the government has not yet created legal pathways for ride-sharing platforms.
• Small population & limited demand: With a population of under 400,000 and a heavily decentralized settlement pattern, the market size for Uber is limited. Iceland’s residents are spread out over vast, rural areas — not ideal for the high-density model that Uber depends on.
• Strong taxi industry presence: The local taxi industry, including companies like Hreyfill, has long served Iceland’s urban centres. These services are professional, reliable, and regulated, making it harder for outside disruptors to enter the market.
• Public opinion and political will: In a small country with strong labor unions and an emphasis on protecting local jobs, there's been little public or political pressure to invite Uber into the mix.

In short, while Uber is convenient in many cities worldwide, Iceland has intentionally opted for a different model that prioritizes local businesses and structured regulations.

What are the alternatives to Uber in Iceland?

If you’re visiting Reykjavík, there are several transportation options:

• Taxis: Available in the capital and at KEF airport. While they’re safe and dependable, they can be expensive, especially for longer rides.
• Hreyfill Taxis: One of the most well-known and reputable taxi services in Iceland. You can book online or via their app: Hreyfill.
• Electric scooters: In Reykjavík, electric scooters by Hopp are popular for short rides. They're fun and eco-friendly, but limited to urban areas.
• Buses: Public transport within the capital is decent, but outside the city? Virtually nonexistent.

While these options work well for short urban trips, they fall short for travelers hoping to experience Iceland's full glory. That’s where renting a car truly becomes the smartest choice.

Why renting a car in Iceland is the best way to explore

Freedom to explore at your own pace

Iceland isn’t a place you want to rush through. Whether you're chasing the northern lights, picnicking beside a hidden waterfall, or stopping to photograph a field of lupines, you need the flexibility to make your own schedule. A rental car gives you that freedom.

And not just any rental car. With Zero Car Rental, you're not only getting a vehicle, but peace of mind. Zero offers:

• Zero excess insurance (yes, that includes gravel, sand, and ash damage)
• 24/7 roadside assistance
• Unlimited mileage
• Online check-in and key box pick-up for seamless travel

For travelers who want control without complication, Zero Car Rental is often cited as the best car rental in Iceland.

Access to the real Iceland: beyond Reykjavík

While Reykjavík is a vibrant city with great food, nightlife, and culture, Iceland’s magic lives in its remote corners. From the glacier lagoons in the southeast to the lava fields of the West, most of Iceland’s iconic attractions are only accessible by car.

Not sure how to navigate the capital with a rental? Check out this excellent guide on exploring Reykjavík with a rental car.

No waiting, no scheduling

Iceland’s public transport system is limited, and taxis can take time to arrive, especially outside Reykjavík. With your own vehicle, you can leave when you want, take detours, or stay longer at your favorite spots. Whether you're heading to a sunrise at Skógafoss or chasing puffins in the Westfjords, you're in charge.

Value for money

Taxis in Iceland are expensive, especially if you're planning day trips or need to reach distant locations. A short taxi ride can often cost the same as a day's car rental. Plus, when you choose a company like Zero Car, everything is included in the price: no hidden fees, no surprise charges.

In fact, we’ve broken it all down in our complete Iceland car rental cost guide.

Perfect for the Ring Road and F-roads

Iceland's legendary Ring Road circles the entire island, leading you through volcanic landscapes, fjords, and icy plateaus. Many of the most exciting detours — like the Highlands or remote valleys — require a 4x4 vehicle and access to F-roads.

Zero Car Rental offers a wide fleet of F-road-ready vehicles and provides a comprehensive self-drive and F-road guide so you can drive with confidence.

Designed for tourists and run by locals

One of the reasons Zero is rated among the best car rental companies in Iceland is their focus on making the rental process frictionless. Everything from online check-in to 24/7 pickup and drop-off is designed around the traveler's needs.

Their FAQ and booking guide answers common concerns and helps you find the right car for your route and travel style.

Off-the-beaten-path adventures await

Want to hike to a hidden hot spring? Explore lava caves? Photograph arctic foxes? These experiences are rarely included in tour packages or reachable by public transport. But with a rental car, you can chart your own journey.

And since Iceland is one of the safest countries in the world, self-driving is not only efficient but incredibly rewarding.

Conclusion: Skip Uber, embrace the open road

While the absence of Uber in Iceland might seem like a drawback at first, it actually encourages a more immersive and independent travel style. Renting a car is the single best way to unlock everything this country has to offer — and with companies like Zero Car Rental, it's easier, safer, and more affordable than ever.

So if you're dreaming of glacial hikes, black sand beaches, and midnight sun adventures, don’t wait for a ride. Create your own.

Explore more. Worry less. Drive with Zero.