Heard of Empower? Latest e-hail app known for cheap rides sued by NYC

New York wants to put the brakes on Empower, a lesser known e-hail company like Uber or Lyft that is now being sued by the city for allegedly operating without a license.

Empower has gained more awareness and popularity in recent months due to customer pricing typically below that of the competition. The company’s progress could be spoiled by a lawsuit from the City of New York.

“Empower has not obtained the proper licensure with TLC (or any TLC license), the agency is unable to confirm if dispatched drivers are TLC licensed drivers operating TLC-licensed for-hire vehicles,” the lawsuit filed last week states.

Empower is surging in popularity not just in New York. The company also has drivers in Baltimore, South Florida, Washington D.C., and North Carolina.

Appearing at a New York City Council meeting earlier this month, the CEO shared insights into its operations in the Big Apple.

“Last week alone, over 10,000 drivers using our software and services provided over a half a million rides to 150,000 riders. That includes over 100,000 rides in New York City, a number that is growing incredibly fast,” Joshua Sear, Empower’s CEO, said.

Sear explained that riders tend to save 15-20% and drivers get 100% of the fare. The model is different than Uber and Lyft because Empower drivers pay for a subscription, allowing them to set their own rates.

New York City first told Empower to stop operating in 2022, and again in 2026. Per the city’s rules, the company is required to be licensed with the Taxi and Limousine Commission.

“We are standing up for licensed drivers who follow the law, for passengers who deserve safe and accountable service, and for a regulatory system built on fairness. NYC’s streets are not a testing ground for companies that refuse oversight” TLC spokesperson Jason Kersten said.

While Empower riders don’t face fines, they might have insurance issues if there is a crash.

“I have a lot of questions around, yeah, the price is great but if something goes wrong what is it going to end up costing me,” Melissa Mickens told NBC New York.

Empower did not respond to a request for comment.