A non-licensed ride-hailing app named Empower is quietly disrupting the existing order of the taxi and rideshare market in New York City. The platform emphasizes “driver autonomy, low passenger fees,” and continues to operate without the approval of the city government, sparking strong backlash from the New York City Taxi and Limousine Commission (TLC).
Empower charges drivers a fixed fee of $50 per month, allowing them to set their own prices and keep 100% of the fare. The company claims that this model can bring cheaper fares to passengers and increase driver income. However, TLC has issued warnings advising citizens not to use the app, stating that it operates illegally in New York City.
According to regulations, all rideshare apps must apply for registration with the TLC to operate legally in New York. They are required to establish a “base” as a dispatch and operation point, pay a $1,500 application fee, and insure each vehicle. Empower currently does not have base qualification.
CEO Joshua Sear of Empower openly admits that the company is deliberately violating relevant regulations. He believes that drivers should have the right to work for themselves and set prices like other professionals. He claims that currently, thousands of drivers complete tens of thousands of trips in New York through Empower each week.
In comparison, market leaders Uber and Lyft have approximately 88,000 drivers in New York, providing over 4 million trips per week.
Price difference is Empower’s biggest selling point. For example, a trip from Bushwick to SoHo during Monday morning peak hours is priced at $28.18 on Empower, while Uber and Lyft charge $68 and $60 respectively for the same route, highlighting a significant price gap.
Sear points out that if Empower establishes a base according to regulations, it will eventually become a high-priced rideshare company like Uber. However, TLC maintains a tough stance, demanding that Empower must follow legal procedures, or else drivers may face fines of up to $500, license suspensions, and potential loss of coverage in case of accidents.
A spokesperson for TLC stated that the city government has repeatedly urged Empower to apply for a license, but the company continues to operate illegally. TLC warns passengers that trips taken through unlicensed apps are not traceable, and seeking assistance in case of lost items or disputes may prove difficult.
Empower is not the only unlicensed platform. Another black car booking platform called Luxy and several WhatsApp groups operate in informal ways to solicit customers in places like hotels.
Amidst rising inflation and increasing costs, many drivers are seeking additional income. Rising costs of car insurance, financing, and higher platform commissions have led some drivers to take risks by soliciting passengers privately and quoting prices arbitrarily.