New York City Takes Legal Action Against Ride-Hailing Service Empower
New York City has initiated a lawsuit against Empower, a ride-hailing platform that claims to be a more affordable choice compared to Uber and Lyft, for operating without the necessary licenses.
The lawsuit, filed in state court, alleges that since its launch in 2022 until now, Empower has conducted over 100,000 rides unlawfully in New York City. The appeal of their pricing, reportedly around 20 percent lower than similar rides on Uber and Lyft, has attracted residents who are feeling the pinch of rising living costs.
Despite its growth, Empower hasn’t sought the required licenses, which has prompted the city to seek a permanent ban on both the service and its founder, Joshua Shea.
“New York City will not tolerate companies that disregard the law while potentially putting their drivers, passengers, and the public at risk,” stated Steve Banks, New York City’s corporate general counsel.
According to the complaint, the operations of Empower violate New York state licensing laws along with other regulations, and the city aims to halt these unlawful activities.
In terms of user activity, the app saw a significant 155% increase in monthly active users in the NYC area, soaring to 92,000 from May 2025 to January this year, as reported by market research firm Sensor Tower. This surge aligns with a growing demand for budget-friendly ride services amid rising costs from Lyft and Uber.
In fact, fares on these established platforms rose nearly 10% last year, as documented in an article by analytics firm Gridwise, referenced by Business Insider.
Empower’s business model involves employing drivers on a subscription basis, avoiding the need to pay commissions per ride. By neglecting to obtain the mandatory licenses, the company sidesteps various fees and charges established by the New York Taxi and Limousine Commission, as highlighted in the legal complaint.
Rosun Marwa, Empower’s chief of staff, defended their position, asserting that every driver utilizing Empower’s platform is a TLC-licensed driver operating with a TLC-approved vehicle.
She added that Empower has consistently offered to help drivers assess and pay the taxes and fees owed, but has been rebuffed by officials from past administrations.
Nevertheless, the TLC has cautioned that utilizing such a service poses significant risks for passengers, particularly concerning insurance implications in the event of an accident. They emphasize that users may not be protected against lost items or issues during rides, and there’s no assurance of the vehicle or driver’s licensing and inspection status.
Moreover, Empower drivers could miss out on workers’ compensation benefits if they incur injuries while working. The TLC has warned that penalties could amount to as much as $10,000 and may jeopardize the drivers’ TLC licenses and vehicle insurance.
Jason Kirsten, a TLC spokesperson, remarked, “This action against Empower sends a clear message that if you operate in this city, you must adhere to TLC regulations. The streets of New York City are not a testing ground for corporations that choose to operate outside the rules.”
Empower has faced legal challenges in various locations before, including defying a court order to halt operations in Washington, D.C. The service is also present in Baltimore, Maryland, Florida, and North Carolina.
