New York City is suing Empower, a ride hailing service that markets itself as a cheaper alternative to Uber and Lyft, for operating without proper licenses.
As of this month, Empower has illegally dispatched more than 100,000 rides in New York City as its low ride fares – advertised as 20% cheaper than comparable rides on Uber or Lyft – win over city residents frustrated by a high cost of living, according to the lawsuit filed Friday in state court.
But the upstart company has failed to apply for relevant licenses since it launched New York operations in 2022, according to the suit — which is seeking to permanently ban the service and its founder, Joshua Sear, from operating in the city.
“New York City will not tolerate companies that flout the law while putting drivers, passengers, and the public at risk,” New York City Corporation Counsel Steve Banks told The Post in a statement.
“As detailed in our complaint, Empower has been conducting business in clear violation of New York’s licensing laws and other regulations, and we are seeking relief to halt these unlawful practices.”
The app’s monthly active users in the New York City area jumped 155%, to 92,000 from May 2025 to January of this year, according to market intelligence firm Sensor Tower. The jump came as New Yorkers have sought out cheaper ride hailing services as Lyft and Uber prices went up.
Fares on those apps rose nearly 10% last year, according to data from analytics company Gridwise cited by Business Insider.
Rather than paying out commissions for each trip, Empower employs drivers via subscription plans – and it also has been saving on surcharges and fees charged by New York’s Taxi and Limousine Commission by skipping out on required licenses, according to the suit.
“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’s chief of staff, told The Post in a statement.
“Empower has repeatedly offered to facilitate the assessment and payment of any taxes or fees owed by drivers who choose to work for themselves, but was repeatedly told by officials in the prior administration that the City would not accept payment of these taxes and fees from drivers.”
The TLC, however, has warned that the service leaves riders vulnerable to substantial dangers, including insurance issues if they are involved in a crash; no accountability for lost property or issues during the ride; and no guarantees that vehicles and drivers are licensed and up to inspection.
Drivers for Empower also risk not receiving workers’ compensation if they are injured on the job; facing fines up to $10,000; and ultimately losing their TLC license or vehicle insurance, according to the TLC.
“This action against Empower sends a clear message: if you operate in this city, you must play by TLC rules,” TLC Press Secretary Jason Kersten told The Post in a statement. “NYC’s streets are not a testing ground for companies that refuse oversight.”
Empower has run into legal issues in other locales, defying a court order to stop operating in Washington, DC. The ride hail service also operates in Baltimore, Md.; Florida; and North Carolina.
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