⚠️ NYC TLC Sends Rare 'All-Licensee' Email Warning Against Doing Business With A Company
⚠️ NYC TLC Sends Rare 'All-Licensee' Email Warning Against Doing Business With A Company
The New York City Taxi & Limousine Commission (TLC) sent out a rare "All-Licensee" email (over 100,000+ people & companies combined), warning against doing business with a specific Company
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The NYC Taxi & Limousine Commission (NYC TLC) sent out a rare ‘All-Licensee’ email (see above) warning drivers and FHV owners against doing business with Empower (we assume they are referring to DriveEmpower.com’s Empower App, we’ll correct that understanding if we’re incorrect).
It’s very rare to see an All-Licensee email (likely over 100,000+ people & companies combined) about illegal base dispatching, that calls out a specific company. It’s also interesting that Empower, which is led by a sophisticated legal and operating team, would have ignored NYC TLC base dispatching rules 🤔.
Why Does It Matter?
Obviously, the NYC TLC wants to regulate the City’s for-hire transport market, but let’s quickly go over the main reasons why the TLC would be upset, which some TLC drivers or FHV owners may not fully appreciate. (Note, we do have issues with the email stating that vehicle owners could be held liable. If a company is leasing a vehicle to an independent operator, the threat of the leasing company being held liable seems like regulatory overreach UNLESS the vehicle owner is facilitating the illegally dispatched trips 🤔)
So, what are the reasons the NYC TLC (& others) may be upset with Empower, IF they are indeed illegally dispatching for-hire trips in NYC. We assume, the TLC would only send such an email after reaching a definitive conclusion ⚖️ about Empower’s operations. If Empower has a response ✍️ to the TLC we will also keep our readers up to date!
😠 Main Reasons NYC TLC Would Be Upset About For-Hire Trips Dispatched Without Using A Licensed TLC Base
Passenger Safety, Unlicensed Drivers & Insurance. If you have an App that’s dispatching without using a licensed TLC base, passenger safety could be at risk and unlicensed (non-TLC) drivers could be operating in the New York City for-hire transportation market illegally. This dilutes the professional environment & nature of the industry. In addition, passengers and drivers would likely not be protected by TLC liability insurance as an official TLC base dispatch wouldn’t have been registered.
New York State & City Taxes, Black Car Fund and Other Fees. All luxury limo and black car (Uber & Lyft have black car bases) for-hire trips originating in NYC’s five boroughs, need to follow TLC dispatching rules related to NY sales tax collection (& remittance), Black Car Fund fee collection and congestion fees. Interestingly, NYC livery bases (community car bases) are exempt from sales taxes (Note: this is our understanding at least and should not be taken as legal advice)
This is a developing story 🗞️, so for now we’ll stop here. If we hear anything else we’ll let you know! If you hear anything, please let us know by commenting below or emailing info@automarketplace.com
AutoMarketplace.com NYC is written by the AutoMarketplace.com team. We cover the NYC for-hire transportation industry and general automotive-mobility news. Search AutoMarketplace.com for trustable local NYC auto repair & service shops. Check out AutoMarketplace on YouTube ▶️ & TikTok ♪
I think empower was a good business for the drivers . Also they accept tlc drivers in nyc so this isn’t a problem . Other companies pushed the tlc to do that
The difference: empower give the driver 100% of the trips fee with or without the surge with 30$ Per month for empower and it will be the best choice for the drivers especially with the gas cost
But Uber and Lyft they take too much from the passenger and give the drivers some shit
The same TLC which ignored it's own rules to allow Uber to operate in NYC as a virtual taxi without a Medallion and flood the city with 100,000+ cars. The second Uber ran out of venture capital and had to start pricing their rides at a market rate, the TLC leapt into action and had the nerve to put Uber in yellow cabs. You know, the industry they've been trying to bankrupt for a decade with artificially cheap rides and street hails done with an app.
Those surcharges are no joke. The drop on the meter in a yellow is $2.50, but the surcharges are up to $3.30. Just to get in a cab. Cuomo added $2.50 which goes directly to the MTA (or is supposed to). That was also a clear attempt to bankrupt the yellow cab business. It's criminal.