A Virginia-based rideshare service that bills itself as cheaper for riders and better for drivers has been ordered to immediately cease operations in and out of D.C. until it registers as a private vehicle-for-hire company with the city.
The legal back-and-forth started in 2020 when the D.C. Department of For Hire Vehicles (DFHV), which regulates rideshare companies and taxis, issued its first cease-and-desist order because Empower refused to register. Empower appealed that order and a subsequent one.
In a statement to WTOP, Empower CEO Joshua Sear said the D.C. Court of Appeals allegedly overturned the first cease-and-desist order because it found no “evidence that Empower’s lack of registration with DFHV posed any threat whatsoever to public safety.”
“Unfortunately, instead of taking that as a wake-up call, just six weeks later, the DFHV issued another C&D, alleging the exact same thing as in their first illegal order. Empower has again appealed and expects that the Court of Appeals will, again, overturn the DFHV’s illegal order,” Sear wrote.
Sear told WTOP last year: “We’ve attempted to work with the Uber-funded DFHV to make sure that drivers who wish to drive for themselves, in competition with Uber and Lyft, comply with whatever regulations are necessary.” He also said that all Empower drivers were fully vetted.
The company’s website said its mission is to transform the gig economy by offering its software to drivers for a tiered subscription fee, allowing them to set their own rates and keep 100% of commissions. It also claimed riders save 20% on average on rides compared to Uber and Lyft.
Empower describes itself as a booking service, like Expedia, and is thus not responsible for issues that happen during rides.
In an email to WTOP in December 2023, the Department of For Hire Vehicles said in part:
- Registration ensures that drivers are properly insured in case of a crash.
- [DFHV] provides rules against discrimination. And allows DFHV to take complaints and work with the company to prevent discrimination due to race or sexual orientation.
- Registered companies also provide accessible apps for people with disabilities, must service the entire District, must provide background checks for drivers, and use a standard trade dress.
The registration process includes paying a fee and requires a surety bond for black cars and/or private sedans up to $250,000 per each vehicle type.
According to the department, since Empower refused to register, riders have no way to know if their drivers are cleared, insured and will take them safely to their destination.
Additionally, it said riders have no way to make complaints, though CEO Sear disputed that.
“If you have an issue with a ride as a driver or as a rider, you’ll find that it’s a whole lot easier to get someone on the phone,” Sear told WTOP. “The District hasn’t presented to us a single piece of evidence of a safety concern.”
After the judge’s order on Tuesday, D.C. Attorney General Brian Schwalb posted a statement on social media.
“Empower refused to take basic steps to ensure riders’ safety — resulting in a passenger getting hurt,” he wrote. “Any businesses operating in D.C. must play by the same rules as everyone else. When a company cuts corners to boost profits and gain an unfair advantage, we will always step in.”
D.C. Council member Brianne Nadeau told WTOP in a statement that the judge that ruled to end Empower’s business in the city “confirmed what was plain from the start.”
“What’s most important here is that riders and drivers will be protected from the unscrupulous practices of a business that thought it should be unaccountable to anyone. The Committee on Public Works, which has oversight of the Department of For-Hire Vehicles, and which I chair, will continue our investigation,” she wrote.
Empower operates in the Winston-Salem and Greensboro areas of North Carolina and in New York City, according to its website.
WTOP’s Sandra Jones contributed to this report.
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