The next chapter in New York City's ride-share saga unfolds with Empower, an app that bypasses existing industry giants in favor of more wallet-friendly fares. Promising lower prices to its users, Empower claims to put drivers first by allowing them to keep 100% of their fares, challenging the status quo dominated by Uber and Lyft, as reported by CBS News New York. In exchange, drivers pay a monthly subscription of $50. A driver, speaking anonymously, emphasized the benefit in a city grappling with soaring inflation, telling CBS News New York, "I have made more money driving less time and less distance, or less amount of passengers."
However, the Taxi and Limousine Commission (TLC) is warning against lighting this beacon of resourcefulness. Touting Empower's operations as illegal, the TLC has made clear the potential fines for drivers tick up to $500 and vehicle owners could face penalties upward of $10,000. Drivers could also be stripped of their TLC license. TLC police are actively on the lookout for Empower vehicles, the TLC cautioned in statements shared on its website and social media accounts. According to the CBS News New York, "Riders using unlicensed apps should know that their trips aren't tracked, and they will likely be on their own if they lose property or experience issues."
Empower's CEO Joshua Sear openly defies these warnings, firing back at the city's mandatory base operation regulation and $1,500 application fee. He argues for drivers' right to work independently, setting their own fares. "Every licensed professional has the ability to work for themselves and determine how much they want to charge for their own services," Sear articulated in an interview, as recounted by Gothamist.
In defiant tones echoing Uber's market-disrupting tactics from a decade ago, Sear maintains that Empower poses an "existential threat" to traditional ride-sharing companies. Empower's approach has drawn the ire of the TLC, which accuses the app of operating without a license and puts riders at risk, which was detailed by Gothamist. "Despite repeated attempts to encourage Empower to apply for a license, it continues to operate illegally," said TLC spokesperson Jason Kersten. Empower is currently engaged in a legal battle with regulators in Washington, D.C., and insists it uses only TLC licensed drivers and vehicles in New York.
The economic draw for riders and drivers alike cannot be understated, especially when comparing the costs. A ride from Bushwick to SoHo incurred a charge of $28.18 via Empower, a stark contrast to the $68 and $60 rates from Uber and Lyft, respectively, as found by Gothamist. Empower isn't alone in its unlicensed operations; other services, such as Luxy and various WhatsApp groups, are also dispatching rides in the city bypassing TLC regulations.
