New York City filed a lawsuit Friday against an illegal e-hail app called Empower, which called for a judge to bar the company from operating in the city because it’s unlicensed and uninsured.
The lawsuit, which was filed in Manhattan Supreme Court, alleges Empower ignored several letters from the Taxi and Limousine Commission ordering it to cease operations and describing it as “unlawful.” The city seeks a permanent injunction against Empower that would block the app's use in New York and deem it illegal.
“Empower has also not applied for a high-volume for-hire service license with TLC for its so-called 'rideshare' transportation service connecting passengers with drivers and their independently owned for-hire vehicles through Empower, despite, by its own admission, reaching the threshold of 10,000 dispatched trips in New York City per day,” the lawsuit states.
Empower’s business model asks licensed taxi and limousine drivers to pay a flat-rate monthly fee to use their app and dispatch rides. In exchange, drivers take home the full fare and get to set their own rates.
The platform launched in New York in 2022, according to the lawsuit. It’s gained traction in the city in recent months because its rides are often cheaper than those offered by Uber, Lyft or yellow taxis. Empower CEO Joshua Sear testified during a City Council hearing earlier this month that his company now dispatches more than 100,000 rides each week across the five boroughs.
The app circumvents city regulations that require taxi apps to register a “base” with the TLC where its cars are dispatched, according to city officials.
“We will not look the other way while illegal operators undermine our laws, exploit drivers, and put passengers at risk," TLC spokesperson Jason Kersten wrote in a statement. "This action against Empower sends a clear message: If you operate in this city, you must play by TLC rules."
The TLC in 2022 sent Empower’s owners a cease and desist letter ordering it to shut down, and has since issued the company dozens of summonses, the lawsuit states. The commission sent another cease and desist to the company earlier this month, court filings show.
A representative for Empower did not immediately respond to a request for comment on the lawsuit.
Roshn Marwah, Empower's chief of staff, previously said that the platform looks “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.”
The legal action comes as incoming TLC Chair Midori Valdivia — who was confirmed in the job by the City Council on Thursday — committed to cracking down on the illegal app during her tenure. The news website The City reported earlier this month that outgoing TLC Commissioner David Do was planning to take a job as Empower’s senior vice president of government and regulatory affairs, but Do quickly backed out a week later.
Empower faced similar legal challenges in Washington, D.C., where the platform first launched in 2020. A judge ordered the company to shut down its operations in the nation's capital. Empower owes the District of Columbia millions of dollars in fines due to a contempt order. The company is appealing the order, according to court records.
