This ‘Illegal’ Ride-Hailing App Lets Drivers Keep 100 Percent of What They Earn

For a $50 monthly fee, Empower turns the full fare over to the driver, and promises lower prices for riders. But city commissions are raising objections.

BY MARÍA JOSÉ GUTIERREZ CHAVEZ, EDITORIAL FELLOW

Illustration: Getty Images

A new ride hailing app has landed in the Big Apple, and while it typically offers lower fares than competitors Uber and Lyft, not everyone is welcoming the newcomer.

On the surface, Empower looks like any other ride share app: A rider orders a car on their phone and a driver picks them up for a specified fare. It’s what happens behind the scenes that makes Empower innovative.

Drivers pay Empower a $50 monthly fee to use the app, with the caveat that they set their own fares—which are often lower than traditional Ubers and Lyfts—and collect 100 percent of the fare.

“Empower is revolutionizing the transportation industry,” the company said on its website. “Not by providing transportation, but by providing software that puts transportation decisions back into the hands of drivers and riders.”

How Canva Became the Power Player in the AI Design Wars

Founded in 2019, the company has gained popularity in Washington D.C. and seen some traction in New York—but not without opposition. Because Empower has been operating without all the required licenses and permits, New York City’s Taxi and Limousine Commission (TLC) has raised objections.

“Trips arranged through illegal, unlicensed apps carry no guarantee that the driver and vehicle meet the same safety standards, and there is no guarantee that passengers are adequately insured in the event of a crash,” the commission’s website says. “Any driver accepting trips through an unlicensed app risks fines, suspension, license revocation, seizure, and forfeiture of vehicles.”

For a ride-share app to be legal in New York it must register with the TLC for a base, a dispatch facility operated by the company. Per Gothamist, Empower currently does not have a base, rendering its services illegal. Additionally, it must pay a $1,500 fee and insure its vehicles.

© Inc.com