New ride-share app promising lower prices in NYC is unlicensed, TLC warns
There's a new ride-share app in New York City promising lower prices than the competition, but city officials say it's illegal.
They're urging riders and drivers not to use it.
What is Empower?
The ride-share race is getting even tighter as newcomer "Empower" hopes to win over riders and drivers.
"I think it's one of the greatest deals a New Yorker could have, especially at times where inflation and the cost of living, it's so high," said one Empower driver, who did not want to share his identity.
The company promises lower fares by giving drivers 100% of the rider's payment, cutting out commissions and fees on both sides.
Instead, drivers pay a $50-a-month subscription in New York City.
"I have made more money driving less time and less distance, or less amount of passengers," the driver said.
TLC says Empower is illegal
City officials, however, say not so fast.
The Taxi and Limousine Commission (TLC) says Empower is illegal and warns that riders may face insurance issues if they are involved in a crash. The TLC posted its warning on its website and social media accounts, urging New Yorkers to avoid unlicensed ride-share apps and naming Empower directly.
Drivers may face the steepest consequences including:
- Fines of up to $500,
- Possible loss of their TLC license,
- And vehicle owners could be hit with up to $10,000 in fines.
In a statement, the commission said:
"We take the safety of all passengers and drivers seriously, which is why anyone dispatching for-hire trips in NYC must be licensed by the TLC. Despite repeated attempts to encourage Empower to apply for a license, it continues to operate illegally. 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. Drivers also risk being fined by TLC Police, who are actively enforcing against Empower trips. They also risk losing their licenses, or forfeiting any worker's compensation if they're injured during an unlicensed trip."
Empower pushed back, saying:
"Every driver using Empower's software to work for themselves in New York is a TLC licensed driver using a TLC licensed vehicle. We look forward to working with the Mamdani Administration to ensure TLC licensed drivers have the same civil rights as all other licensed professionals in New York and that New Yorkers have access to affordable and safe transportation."
