NYC rideshare app might owe MTA millions in unpaid congestion pricing tolls
Rideshare app might owe MTA millions in unpaid congestion pricing tolls
New York City leaders are urging state officials to go after Empower, which is accused of not paying the congestion pricing fees that other rideshare companies are. FOX 5 NY's Antwan Lewis has details.
New York - Experts say millions of dollars in congestion pricing are not being paid, and New York City leaders are urging the MTA to go after those avoiding the toll. Some of the biggest culprits, they say, are unlicensed rideshare apps.
One of the newer apps, Empower, is accused of being one of those bad actors. But the company says that's not the case at all.
Trying to beat the system?
The backstory:
New York City Council Member Shaun Abreu, chair of the council's transportation committee, said Empower is trying to beat the system by not following the same rules as companies like Uber and Lyft.
"They're skirting the rules by not being compliant with the Taxi and Limousine Commission. They haven't even filed with them," Abreu said.
Additionally, Abreu says, Empower is not paying the congestion pricing fees that other rideshare companies are.
"We do know with congestion pricing, because they have TLC plates. It's why they're not collecting charges on those congestion pricing trips," the council member said. "It's very, very important … that the MTA starts clamping down on Empower when it comes to collecting congestion fees per trip, which is something that is not happening, and we're potentially losing millions upon millions as a result."
A Congestion Pricing sign on Park Avenue in New York, US, on Friday, Jan. 3, 2024. New York's controversial plan to charge drivers for entering Manhattan's central business district starting on Sunday is facing a last-ditch challenge from neighboring
What they're saying:
MTA Chair Janno Lieber recently reacted to the accusations against Empower.
"These guys are stealing from New Yorkers, and we have to find a way to make sure that, if they found a loophole, it has to be closed," Lieber said.
Empower says drivers are in compliance
The other side:
Empower fired back against the accusations, saying their drivers are in compliance with TLC rules, including insurance, and that the city has repeatedly rejected their offers to facilitate assessment and payment of any taxes and fees, including congestion pricing.
"That's not a good faith response from them. The city has repeatedly tried to get them to be compliant with our city laws. In fact, that's why we are currently in court right now with TLC and also Empower, to make sure that they're coming into compliance," Abreu said.
The Taxi and Limousine Commission issued a statement to FOX 5, which read in part, "We will not look the other way while illegal operators undermine our laws, exploit drivers, and put passengers at risk. NYC's streets are not a testing ground for companies that refuse oversight."
Heading to court
What's next:
Empower said in its statement to FOX 5 that it can back up its claim of rejected attempts to facilitate fees and assessments with the TLC and other stakeholders.
As the court case plays out, Abreu said he's concerned about New Yorkers who are using the Empower app.
"Look, we want to make sure that we're achieving competitive pricing, but not at the expense of safety and not at the expense of flouting the laws that govern New York," he said.
The case is going through the judicial process at this time.
The Source: This report is based on statements from New York City Council Member Shaun Abreu, Empower and the NYC Taxi & Limousine Commission.
