New NYC ride app claims fares up to 20% cheaper than Uber, Lyft — but city says it’s illegal
NEW YORK - A new ride-hailing service called Empower is drawing interest from drivers and riders in New York City, promising higher earnings and lower fares.
What we know:
But city officials say the company is operating outside the law.
The dispute echoes the early days of Uber and Lyft, which initially launched in the city without approval before registering with the Taxi and Limousine Commission, known as the TLC.
The agency requires ride-hailing companies and their drivers to be licensed, vetted and insured.
Empower says it is different.
Empower recruits licensed drivers
Close-up of vertical sign with logos for ridesharing companies Uber and Lyft, with wheels of a car in the background, indicating a location where rideshare pickups are available in downtown Los Angeles, California, October 24, 2018. (Photo by Smith C
The company is recruiting drivers who are already licensed and vetted by the TLC through Uber and Lyft. On its website, Empower pitches a model in which drivers keep all of their fare revenue and set their own prices.
In exchange, drivers pay a monthly subscription fee that starts at $50 and, in some cases, has risen to $350.
20% cheaper rides
Empower also says riders can pay up to 20% less compared with other app-based services.
But critics argue the company is attempting to sidestep city oversight.
"Empower’s using a bunch of fancy words to basically say that they don’t want to be under rules and regulations, and it’s only the drivers that should be under rules and regulations," said a representative of the New York Taxi Workers Alliance, which represents yellow cab, Uber and Lyft drivers.
"We have seen that play out before and every time the drivers end up earning poverty wages and they’re left with all of the risks," the representative said. "We don’t want to go back to those days."
Transportation reporters have also raised concerns about accountability and safety.
Is it legal?
Iconic yellow taxi stationary inline queued and moving on the streets of Midtown Manhattan, NYC in front of the entrance of Grand Central Terminal or Grand Central, a commuter rail terminal located at 42nd Street and Park Avenue, New York City on Feb
Because Empower is not registered with a licensed base, rides arranged through the app cannot be tracked by the TLC or the city, according to reporting by Gothamist.
"If a driver gets into a car accident, both the rider and the driver might not get insurance covering that ride because it’s not registered," a transportation reporter for the outlets said.
What they're saying:
In a statement, Empower said:
"Every driver using Empower software to work for themselves in New York is a TLC licensed driver using a TLC licensed vehicle. We look 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 and that New Yorkers have access to affordable and safe transportation."
The TLC said that regardless of whether drivers are individually licensed, any trip dispatched through an unregistered company is illegal.
"The bottom line is this," a TLC spokesperson said. "Even if Empower is using drivers who are licensed and vetted by the TLC, the fact that they are working for a company that is not registered with the TLC means every ride is illegal."
The agency said the arrangement puts both passengers and drivers at risk.
The Source: This article is based on information from FOX 5 NY's Linda Schmidt and Empower.