New York City is taking legal action against Empower, a ride-hailing app that offers lower fares than Uber and Lyft, for allegedly operating without the required licenses from the New York City Taxi and Limousine Commission (TLC).
City attorneys filed a lawsuit on Friday in Manhattan, accusing Yazam Inc., the company behind Empower, of “flagrantly flouting” the law since launching operations across the five boroughs in 2022.
“New York City will not tolerate companies that disregard the law while putting drivers, passengers, and the public at risk,” said Steve Banks, the city’s corporation counsel.
He said Empower has been operating in clear violation of licensing requirements and other regulations, and the city is seeking legal action to halt these practices.
The TLC has also warned that drivers who sign up with the unlicensed platform could face severe penalties, including fines of up to $10,000 and the possible loss of their licenses.
TLC Press Secretary Jason Kersten emphasized that the enforcement action sends a strong message: companies operating in New York City must comply with TLC regulations. “NYC’s streets are not a testing ground for companies that refuse oversight,” he said.
Concerns have also been raised by city officials.
During a City Council confirmation hearing, Midori Valdivia criticized Empower for ignoring city rules. She warned that drivers could be left vulnerable in the event of accidents, stating that the company may not provide adequate protection or support.
Meanwhile, Bhairavi Desai, executive director of the New York Taxi Workers Alliance, stressed the importance of equal regulation across all ride-hailing platforms.
She noted that companies like Empower must adhere to minimum pay standards to protect drivers’ earnings.
Desai also pointed out that while Empower claims drivers can keep all fares, it does not clearly communicate that drivers may still be responsible for collecting and paying additional charges, including sales tax, black car fund surcharges, MTA taxes, and airport fees.