Dan was founded as a cooperative on December 1, 1945, from the merger of 2 companies, Galei HaMaavir and Ihud Regev. It demutualised, becoming a limited company in May 2002. Dan operates 1,200 buses and has 2,400 employees. It transports over 600,000 passengers daily. In 2009, 23.5% of all Israeli bus travelers used Dan's lines. Dan provides bus service six days a week. From Friday afternoon until after Sunset Saturday night, service is suspended in observance of the Jewish Sabbath. Dan buses run until approximately 23:30 p.m. and resume service in the early morning hours.
In September 2009, Dan and Veolia reached an agreement on the purchase of Veolia's share in the Jerusalem Light Rail for $15–20 million. In October 2010, Veolia reneged and said it would sell its stake to Egged. As a result, Dan sued Veolia.