NYC Mayor Zohran Mamdani nominated TLC chair Midori Valdivia came down heavily on the illegal operation of the unlicensed e-hail app ‘Empower’ saying, it is very risky for the auto industry as well as the passengers.
“It’s (Empower) operation is very risky. Who will pay in the event of accident?. I can’t authorize such a company in the market which is not complying rules to operate,” Midori told TLC Drivers Correspondent Kamal Ahmed at an event here yesterday.
At an Iftar celebration hosted by New York Taxi Workers Alliance (NYTWA) in its Long Island office yesterday, she said Empower is not regulated by the City, leaving anyone involved in a crash with a vehicle using the app exposed to problems with insurance.
They do not follow rules, they do not pay for Black Car Fund and the MTA, Midori said and added that Empower has to enlist as a base in order to operate in the city.
Talking to the TLC Drivers Voice on the sidelines of the event, NYTWA Executive Director Bhairavi Desai said, “They should be under the same regulations as like Uber and Lyft that is important for derivers. Because it has to do with the minimum pay…they would have to be under the minimum pay rates so they can’t pay the drivers less than that.”
“The thing is when Empower right now claims that drivers can keep all the fares, but what they are not telling the drivers is that on those fares they are also supposed to collecting sales tax, black car funds surcharge, MTA taxes and the airport fees.” She pointed out.
The labor leader said the drivers don’t realize that money which is supposed to be turned it over. The idea the drivers are keeping more of the fairs because they don’t have to turn over the taxes is understandable.
“The state is never gonna allow the Empower model to keep growing. Because that means state is not getting the sales tax, MTA tax and black car fund surcharge. Which is for workers’ compensation.” Said the alliance chief.
“If the drivers are injured they are not gonna be insured. Let me sum it up…someone will be under Empower trip the driver will be at risk for the matter of all of the said taxes and secondly in case of an accident, the trip is not fully covered. How is that gonna benefit to the drivers, she questioned. It’s a trap. Empower attract the drivers, something that they can’t maintain. It’s a trap for the drivers in the long run.
Earlier last week in the City Council confirmation hearing, Midori Valdivia voiced concern over the app company ignoring city rules to operate.
“I am against that this is happening. It’s not Ok. Empower lures drivers but yet, if or when a driver is in a crash, a passenger gets injured, they leave them high and dry.” She said.
“I will use every power in the TLC’s authority and as much as I can in the city’s authority to stop Empower and to stop this illegal operation.” She added.