WASHINGTON — Uber and Lyft are as universal with travel as taxis in the 20th century. But in Northern Virginia, one tech CEO is planning to disrupt the legendary disrupters.
“Empower offers cities the first chance to say no to Uber,” Josh Sear, CEO of Empower, said.
Sear said he came up with the idea for the tech company while talking to a Lyft driver several years ago.
“I asked the driver, if you got 100% percent of the fare, set your own rates, and got support services-is that something you would pay for?” he smiled.
Sear said that is the basis for his company -- a way to "empower" drivers.
Unlike Uber and Lyft, with Empower, drivers keep 100% of the fare and Sear said it benefits riders.
“First and foremost, riders are saving about 15 to 20% on average,” he said.
Empower is still in its infancy. It operates in two markets: Winston-Salem and Washington D.C. Sear said drivers using Empower have provided more than 4 million rides since 2020 in D.C.
But, its not been an easy ride.
Back in 2020, D.C.’s Department of For-Hire Vehicles (DFHV) put Empower on notice.
“They had decided we needed to cease operations,” Sear said.
DFHV told WUSA9, Empower has refused to register with the department. A spokesperson said that regulation allows D.C. to make sure Empower riders aren’t discriminated against, drivers are insured and that they are subject to a background check.
But Sear said drivers using Empower are already background checked, and many of them also drive for Uber and Lyft.
“That is provided by one of the largest providers of background checks in the country,” he explained.
He said the main issue is Empower is a software company. He likens how Empower operates to a food or travel reservation company.
“Just like the Health and Safety board, the Alcohol and Beverage Commission, and fire code don’t apply to Open Table,” he explained.
Sear said he is happy to work with DFHV to ensure that drivers comply with any reasonable regulations the DFHV feels are necessary.
But the DFHV said Empower is still not in compliance. As a result, officers have impounded cars and fined drivers.
Sear said he thinks it is a fundamental misunderstanding of how Empower operates.
“I don't think it was conceivable [to regulators] that individual drivers would have the ability to work for themselves," he said.
"To get sufficient ride requests. To get software and support services that allow them to run their own businesses. We welcome having a dialogue trying to find a solution that satisfies reasonable concerns of the District."