NYC Taxi Commission Nominee Vows Crackdown on Unlicensed E-Hail App Empower
New York City’s incoming Taxi and Limousine Commission (TLC) Chair, Midori Valdivia, has pledged to aggressively pursue legal action against Empower, an e-hail application operating without city authorization. Valdivia’s commitment, voiced during a City Council confirmation hearing on Thursday, centers on concerns for passenger and driver safety, as well as the app’s circumvention of established regulations governing for-hire transportation in the city. The move signals a strong stance from the Mamdani administration against unregulated competition within New York City’s complex transportation landscape.
The core issue lies in Empower’s business model, which allows licensed TLC drivers to utilize the app for a monthly fee, retaining 100% of their fares. This structure results in lower fares for riders compared to established services like Uber and Lyft, as Gothamist reported. However, Valdivia argues that this cost advantage comes at a significant risk, as Empower’s lack of regulation leaves passengers and drivers vulnerable in the event of accidents or disputes. The potential for financial hardship and legal complications for those involved in incidents while using the app is a primary driver of the TLC’s concern.
Concerns Over Insurance and Driver Safety
Valdivia expressed strong disapproval of Empower’s operations, stating, “I’m aghast that this is happening. It’s not OK. Empower lures drivers with these claims, but yet, if or when a driver is in a crash, a passenger gets injured, they leave them high and dry.” She emphasized that without proper TLC oversight, there is no guarantee of insurance coverage or accountability in the event of an accident. The TLC requires all “bases” – companies dispatching for-hire vehicles – to register with the commission, a process that ensures regulatory compliance and provides a framework for insurance claims. Empower has repeatedly refused to comply with this requirement.
The lack of regulation extends beyond insurance. The TLC’s oversight includes vehicle safety inspections, driver background checks, and fare transparency – all designed to protect both passengers and drivers. Without these safeguards, Valdivia contends, Empower creates an unsafe and unfair environment within the city’s transportation system. The potential for exploitation of drivers, who may be unaware of the risks associated with operating outside the regulatory framework, is similarly a significant concern.
CEO’s Legal Battles and Previous Contempt Ruling
Adding to the scrutiny surrounding Empower is the legal history of its CEO, Joshua Sear. Valdivia highlighted that Sear was held in contempt by a judge in Washington D.C. on February 25, 2026, for failing to adhere to local regulations. The decision is currently under appeal. This prior legal challenge underscores a pattern of non-compliance with regulatory bodies, raising further questions about Empower’s commitment to operating within the law.
Sear, in a previous interview with Gothamist last month, indicated that his company was not opposed to obtaining the necessary licensing and expressed a willingness to collaborate with the Mamdani administration. However, he has not yet taken steps to register Empower as a TLC base. Attempts to reach Sear for comment on Valdivia’s recent statements were unsuccessful.
Valdivia’s Background and Mamdani’s Commitment to Taxi Drivers
Midori Valdivia’s nomination as TLC Chair, announced by Mayor Zohran Mamdani on January 13, 2026, reflects the administration’s dedication to representing the interests of taxi drivers and working people. According to a press release from the Mayor’s office, Valdivia brings extensive experience in transportation policy, having previously served as Deputy Commissioner for Finance and Administration at the TLC, as Senior Advisor to the Executive Director at the Port Authority of New York and New Jersey, and as Chief of Staff to the Chair and CEO of the MTA. She is also a current member of the Metropolitan Transportation Authority (MTA) board.
Mayor Mamdani’s commitment to taxi drivers is well-documented. As an Assemblymember, he participated in a 15-day hunger strike alongside the Taxi Workers Alliance to advocate for debt relief for drivers burdened by predatory lending practices related to taxi medallions. He continued to champion their cause throughout his mayoral campaign and even rode with taxi driver Richard Chow – a fellow participant in the 2021 hunger strike – to his inauguration earlier this month, as reported by DocumentedNY. This history underscores the administration’s intention to prioritize the needs of the city’s for-hire vehicle drivers.
The Regulatory Landscape and TLC’s Authority
The TLC plays a crucial role in regulating the for-hire transportation industry in New York City. Its responsibilities include licensing drivers and vehicles, setting fare structures, enforcing safety standards, and ensuring consumer protection. The commission’s authority stems from the New York City Administrative Code, which grants it the power to oversee and regulate taxis, limousines, and other for-hire vehicles operating within the five boroughs.
Registration as a TLC “base” is a fundamental requirement for any company dispatching for-hire vehicles. This process allows the TLC to monitor operations, collect data, and enforce regulations. It also establishes a clear framework for handling insurance claims and resolving disputes. By operating without a TLC base registration, Empower is effectively circumventing these safeguards and operating outside the law.
Next Steps and Confirmation Vote
A vote to confirm Midori Valdivia as TLC Chair is scheduled for March 26. If confirmed, Valdivia has vowed to utilize the full extent of the TLC’s authority to shut down Empower’s illegal operation. She has indicated that she will explore all available legal avenues to enforce compliance and protect both drivers and passengers. The outcome of the confirmation vote and Valdivia’s subsequent actions will have significant implications for the future of the for-hire transportation industry in New York City.
The situation with Empower highlights the ongoing challenges of regulating the rapidly evolving transportation landscape. As new technologies and business models emerge, the TLC must adapt and enforce regulations to ensure fairness, safety, and accountability for all stakeholders. The agency’s response to Empower will serve as a test case for its ability to navigate these challenges and protect the interests of New Yorkers.
Key Takeaways:
- Midori Valdivia, nominee for TLC Chair, has pledged to shut down the unlicensed e-hail app Empower.
- Empower’s business model, offering lower fares, operates without TLC regulation, raising safety and insurance concerns.
- Empower’s CEO, Joshua Sear, was previously held in contempt of court in Washington D.C. For regulatory non-compliance.
- Mayor Mamdani has a long history of advocating for the rights of taxi drivers and working people.
- A vote to confirm Valdivia is scheduled for March 26.
Stay tuned to World Today Journal for further updates on this developing story and the confirmation of Midori Valdivia as the next Chair of the New York City Taxi and Limousine Commission. We encourage you to share your thoughts and experiences with for-hire transportation in the comments below.
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