New York City is going to court in a bid to shut down a controversial app-hail company that officials say is operating outside of Taxi & Limousine Commission (TLC) regulations. A lawsuit was filed in late-March, in Manhattan state court against Yazam Inc., charging that the company’s Empower app has been “flagrantly flouting” the law since 2022 by operating as an unlicensed dispatcher of for-hire vehicles in the five boroughs.
“New York City will not tolerate companies that flout the law while putting drivers, passengers, and the public at risk,” said Steve Banks, the city’s corporate counsel. “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 suit marks the latest escalation in the city’s maneuvering against Yazam and its chief executive, Joshua Sear. The company, which operates as Empower, has repeatedly run afoul of the TLC by not playing by the commission’s rules, which include collecting per-trip taxes and surcharges. The TLC has warned drivers that they risk losing their licenses and getting slapped with fines of up to $500 by signing on with what they describe as “unlicensed software platforms that serve as bases by connecting drivers with trips.” TLC has also said that vehicle owners who link up with the service could face fines of up to $10,000.
TLC first hit Empower with a cease-and-desist letter in May 2022, then followed up with another one on March 18. The latest letter urged the company to immediately deactivate the Empower app, and to contact TLC to “discuss the application process for a For-Hire Vehicle Base license.” Court papers show that undercover TLC enforcement agents flagged Empower 32 times for unlicensed activity in 2022 and 2023. The company ignored these violations, resulting in default judgments against it. The TLC says another 38 violations have been issued since Feb. 4 of this year.
The lawsuit against Empower came as the office of state Attorney General Letitia James is reviewing potential violations by the company. City Councilmember Shaun Abreu, chair of the council’s transportation committee, also said Empower is failing to collect legally required fees and taxes on each trip. Valdivia, the new TLC commissioner, has vowed to shut down Empower.
Source: The City
