UPDATE: The Committee on Public Works & Operations voted unanimously on Wednesday, September 25 to authorize the investigation.
Committee on Public Works & Operations has received reports of health and safety risks posed by app
WASHINGTON, D.C.— Councilmember Brianne K. Nadeau, D-Ward 1, today announced that the Committee on Public Works & Operations, which she chairs, will vote today to launch an investigation into the unauthorized operations of the ride hailing app Empower, citing its lack of compliance (or lack of proof of compliance) with numerous laws and regulations that protect the safety and security of consumers.
Empower, founded in 2019 by Yazam, Inc., has not registered as a private for-hire vehicle company with the Department of For-Hire Vehicles (DFHV), despite a recent D.C. Court of Appeals case confirming that they fit the description of such a company. DFHV issued Yazam, Inc. two cease-and-desist orders as well as a compliance order requiring Empower to remedy violations before April 4, 2024.
The company has yet to comply with any order or pay any fines issued for ongoing violations. Outstanding fines currently total tens of millions of dollars.
“Unfortunately, the reason that Empower is so inexpensive is that it is not legally operating in the District of Columbia. The Department of For-Hire Vehicles has repeatedly told Empower this and has offered again and again – as recently as last week – to register the company on an expedited basis,” Nadeau said.
The Committee on Public Works & Operations has received reports of health and safety risks posed by operators using Empower, including allegations of stalking, harassment, and impaired driving. Because of Empower’s unauthorized status, there is currently no way for the Committee and the public to know how extensive these behaviors are on the platform, how many issues have been reported, and whether drivers who engaged in these activities are still permitted to use the platform.
Due to Empower’s failure to comply with laws pertaining to insurance requirements for private for-hire vehicle companies, riders may be exposed to considerable financial risk in case of injury.
“We already have heard cases where people have been hurt in Empower vehicles and they have no recourse. If a driver doesn’t have insurance and can’t afford to pay the medical bills, the rider is just out of luck. As a Councilmember I do not find that acceptable,” Nadeau said.
The investigation will examine the extent of Empower’s violations and the impact of its continued operation on riders, operators, and the for-hire vehicle industry as a whole. It will also calculate the total amount the company owes to the District in unpaid taxes, civil penalties, and other fees. The Committee will determine if updates to District law are necessary to ensure the protection of riders.
“I have a responsibility to the residents of the District of Columbia to assist in upholding the law, and right now Empower is clearly breaking it. They are in violation of a cease-and-desist order. They are being fined tens of thousands of dollars every day they operate without registering. And they are asking drivers themselves to operate outside the law and exposing them to having their vehicles impounded.”
The Committee will vote on Wednesday to authorize the investigation. Nadeau and the Committee will then coordinate with Council colleagues, as well as the Office of the Attorney General, who recently filed a lawsuit against the company, on next steps.
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