The CEO of Empower, a ride-hailing startup aiming to disrupt the taxi industry, agreed on Tuesday to halt operations in Washington, DC, after a judge accused him of contempt of court and threatened him with jail for defying orders to stop. Joshua Sear, who founded Empower in 2019, conceded on the witness stand that the city had made clear it didn't want his company there, per the Washington Post. "You've gotten what you asked for," he told the court, asking to return home to his family.
The business model for Empower, which the New York Times once said was trying to "out-Uber Uber," lets drivers set their own fares and keep all their earnings, paying a subscription fee to the platform rather than sharing revenue. Sear and his lawyers argued that this made Empower a booking service—not a ride provider like Uber or Lyft—but DC judges have repeatedly disagreed. The company has racked up millions in fines and faced vehicle impoundments for operating without city approval.
Judge Shana Frost Matini, who told Sear "the law is not being followed," gave him up to two weeks to comply, acknowledging the technical hurdles of disabling the app in just one city. The company also operates in New York, Baltimore, and Greensboro, North Carolina. Empower has protested the rules, arguing it tried to register but couldn't meet the city's requirements, which include hefty back payments. City officials say the laws are necessary for rider safety and fair competition.
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