Per Snopes:

Waze — which was founded in Israel in 2008 and acquired by Google in 2013 —  specifies in its terms of use that Israeli courts and laws govern the app's legal matters. Uri Levine, Ehud Shabtai and Amir Shinar, who reportedly served in the Israeli military, co-founded Waze in 2008.

However, no credible, publicly available evidence confirmed or debunked the claim that Israel's government, military or other Israeli officials secretly use Waze to surveil the app's users. As such, we've rated this claim a mixture of true and undetermined information.