Mayor Zohran Mamdani’s nominee to lead the Taxi and Limousine Commission vowed Thursday to crack down on an illegal taxi app called Empower that she says puts both drivers and passengers at risk.
Incoming TLC Chair Midori Valdivia said at a City Council confirmation hearing that she was shocked the owners of the app were ignoring city rules to operate.
Under Empower’s business model, licensed TLC drivers pay a monthly fee to use its app. In return, the drivers take home 100% of fares. As a result, the average fare to travel around the five boroughs is cheaper than competing app-based services like Uber and Lyft, Gothamist previously reported. But Valdivia said Empower is not regulated by the city, leaving anyone involved in a crash with a vehicle using the app exposed to problems with insurance.
“I’m aghast that this is happening,” Valdivia said. “It’s not OK. Empower lures drivers with these claims, but yet, if or when a driver is in a crash, a passenger gets injured, they leave them high and dry.”
“I will use every power in the TLC’s authority and as much as I can in the city’s authority to stop Empower and to stop this illegal operation,” she added.
Valdivia noted Empower’s CEO Joshua Sear has been held in contempt by a judge in Washington D.C. for failing to comply with local regulations. Empower is appealing that decision.
In New York City, Empower is required to register a “base” with the TLC. Officials say registration allows the city to regulate rides and cover insurance claims, should a driver get into a car accident.
Valdivia said TLC officials have repeatedly urged Empower to become licensed but they refused. She described the decision as a “huge risk to drivers and passengers.”
Sear did not respond to an inquiry. Last month, Sear told Gothamist in an interview that his company isn’t opposed to obtaining the proper licensing and that he’d consider working with the Mamdani administration.
A vote to confirm Valdivia to lead the TLC is expected on March 26.
