NEW YORK (PIX11) — New York City has filed a lawsuit against a rapidly growing rideshare service in an attempt to shut it down.
In the suit filed on Friday, the city claims that Yazam Inc.’s Empower app, which brands itself as a more affordable and beneficial alternative to companies like Uber and Lyft, has been ducking requirements from the Taxi and Limousine Commission for years.
The TLC requires any for-hire transportation service to apply for and be granted licensure. The city claims Empower has not obtained “any” TLC license since coming to New York City.
Since 2022, the TLC has issued 51 summonses to Yazam Inc. for violation of city law, according to the lawsuit. The city claims no Yazam representatives have appeared at the Office of Administrative Trials and Hearings in response.
The Chief of Staff at Empower, Roshn Marwah, told PIX11 News that all Empower drivers are TLC licensed drivers and use TLC licensed vehicles.
“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. Empower will again make this clear when we meet with TLC leadership this week,” Marwah said in a statement.
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On March 18, the TLC issued a cease-and-desist letter regarding Empower’s operations in New York City.
According to the TLC, Empower could face fines of $10,000 per day for dispatching 10,000 or more trips.
Yazam Inc. CEO Joshua Sear stated that the company dispatched over 100,000 New York City rides in one week. “A number that is growing incredibly fast,” Sear testified at a hearing on March 12.
Spencer Gustafson is a digital content producer from Long Island who has covered New York state and city news since 2023. See more of his work here.
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