Ride share app Empower has kept running in D.C. despite a judge's order to stop. The app’s owner was even threatened with jail time if he didn't shut it down but a loophole has him back in court. The controversies are piling up, leading many to wonder if they belong in D.C. at all. Let us catch you up on the latest.
What Is Empower?
Empower is a rideshare app like Uber or Lyft. Open the app, plug in your destination, it hails a driver… you know the drill. The big difference is that Empower is cheaper. The company claims (and our own experience can attest) it’s at least 20% less expensive on average.
Seems Great, What’s the Issue?
You may have guessed, but they are cheap for a reason. Unlike Uber or Lyft where drivers are essentially contracted employees, Empower says they simply provide the software that connects drivers and users. Because they are “just” an app provider, they are able to cut down on overhead costs and avoid city regulations that would normally apply.
Primarily, they don’t make drivers get commercial ride insurance (required for any non-personal driving), so if an accident happens, the rider could be left out to dry. Cue big fight with the city.
Which rideshare app to choose? 🤔 (Anchiy/Getty Images)
Empower’s Not Backing Down
Over a year ago, D.C. issued a cease and desist order for Empower to stop operating because it wasn’t complying with city regulations. A judge upheld the order. But, nevertheless, Empower continued.
Attorney General Brian Schwalb sued the company for ignoring a cease-and-desist order, saying "the lack of compliance by Empower ... poses a significant risk to public safety." Still, Empower continued.
Now, Empower owes the city roughly $50M in fines, none of which have been paid, and they claim they cannot afford to pay.
Threading the Loopholes
All this escalated to the CEO of Empower being threatened with jail time last month. But, the judge allowed him to stay out of jail while he appeals. The company also agreed to stop operating unlicensed cars in D.C., but in reality nothing changed. Within city limits the app simply offered drivers free use of the software without any service agreement. Aka they found a loophole that makes it very hard to enforce compliance.
So, for now, Empower remains on D.C. streets and the five year long fight between the brazen startup and city hall continues.
