Full Breakdown
New York City Sues Empower for Operating Without Licenses
3/30/2026, 8:28:21 PM
Legal Action Against Empower
New York City has initiated a lawsuit against Empower, a ride-hailing service that claims to offer fares 20% cheaper than those of Uber and Lyft. The lawsuit, filed in state court, alleges that Empower has illegally dispatched over 100,000 rides since its launch in New York in 2022 without obtaining the necessary licenses. The city is seeking a permanent ban on Empower and its founder, Joshua Sear, from operating within its jurisdiction.
According to the lawsuit, Empower's business model, which employs drivers through subscription plans rather than traditional commission structures, allows the company to bypass fees and surcharges mandated by the New York Taxi and Limousine Commission (TLC). This has reportedly contributed to a significant increase in Empower's user base, which grew by 155% from May 2025 to January 2026, reaching 92,000 monthly active users. This surge coincides with rising fares on established platforms like Uber and Lyft, which increased by nearly 10% last year.
Risks and Concerns Raised by the TLC
The TLC has expressed serious concerns regarding the safety and legality of Empower's operations. The commission warns that riders using Empower may face significant risks, including potential insurance complications in the event of an accident, lack of accountability for lost property, and uncertainty regarding the licensing and inspection status of vehicles and drivers. Furthermore, drivers for Empower may not receive workers' compensation if injured while working, and they could face fines up to $10,000, risking their TLC licenses and vehicle insurance.
Jason Kersten, the TLC Press Secretary, emphasized the importance of regulatory compliance, stating, “This action against Empower sends a clear message: if you operate in this city, you must play by TLC rules. NYC’s streets are not a testing ground for companies that refuse oversight.”
Empower's Response
In response to the lawsuit, Empower's chief of staff, Roshn Marwah, asserted that all drivers using Empower's platform are licensed by the TLC and operate licensed vehicles. Marwah claimed that Empower has consistently offered to facilitate the payment of any taxes or fees owed by drivers, but was reportedly informed by officials from the previous administration that the city would not accept such payments.
Broader Implications
The legal action against Empower not only highlights the challenges faced by new entrants in the ride-hailing market but also underscores the ongoing tensions between regulatory bodies and innovative business models. Empower has previously encountered legal issues in other regions, including defying a court order to cease operations in Washington, D.C., and it also operates in Baltimore, Maryland; Florida; and North Carolina.
Verbatim Quotes
- “New York City will not tolerate companies that flout the law while putting drivers, passengers, and the public at risk,” — Steve Banks, New York City Corporation Counsel
- “Every driver using Empower’s software to work for themselves in New York is a TLC licensed driver using a TLC licensed vehicle,” — Roshn Marwah, Empower Chief of Staff
- “NYC’s streets are not a testing ground for companies that refuse oversight.” — Jason Kersten, TLC Press Secretary
