In this particular problem I needed the image background color and the UIFigure background color to be the same. I took a png image with transparent background and figured a workaround.
[im,map,alpha]=imread('carblack.png');
im1 = im(:,:,1); %R
im2 = im(:,:,2); %G
im3 = im(:,:,3); %B
zeroel = find(~alpha) ; % Find transparent pixels (background)
im1(zeroel) = [0.81*255]; % Make those pixels a known color
im2(zeroel) = [0.87*255]; % which is the background color
im3(zeroel) = [0.91*255]; % of my UIFigure
imfinal(:,:,1) = im1;
imfinal(:,:,2) = im2;
imfinal(:,:,3) = im3;
%imshow(imfinal,'Parent',app.UIAxes)