WASHINGTON — A ride-share company has been ordered to shut down again. Empower, the company, was also asked to shut down in 2020, at least until it registers with D.C.’s Department of For-Hire Vehicles (DFHV).
Empower is a tech company run by CEO Josh Sear. The company aims to “empower” ride-share drivers, by allowing them to set their own rates and keep 100% of the fare, Sear told WUSA9 in 2023.
But the company hasn’t registered with DFHV, despite being asked to for four years.
The 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, a DFHV spokesperson said.
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."
Empower operates in D.C. and in Winston-Salem, North Carolina. Sear said drivers using Empower have provided more than 4 million rides since 2020 in D.C. And, he said it saves riders 15% to 20% on average, compared to Uber or Lyft.
