Judge orders rideshare app Empower to halt Maryland operations

Empower, a ride-hailing Uber and Lyft alternative billed as a better deal for both drivers and riders, may have to close up shop in Maryland.

Public Utility Law Judge Amy Schaeffer issued a cease and desist order against the company this week, writing that Empower “presents severe and ongoing risks to public safety” by facilitating rides without submitting to regulatory oversight.

Schaeffer sided with state regulators who raised several concerns about their inability to access information about Empower’s drivers, including details of their auto insurance.

Schaeffer gave the company 15 days to request a further hearing on the matter or the order will become final.

The potential legal setback for the controversial ride-hailing company is the latest escalation in a yearslong fight between Maryland and Empower, which has shaken up the industry with cheaper rides and better pay for drivers.

Though not a household name like its competitors, Empower appears to be growing in popularity, claiming it now facilitates roughly half of all for-hire rides across Maryland. The company also continues to expand across the country, but has faced similar legal challenges around licensing and safety concerns in cities like New York and Washington, D.C.

“Drivers using Empower’s software to work for themselves in Maryland are now providing half of all rides in the state. No evidence has ever been presented that anyone has been harmed as a result,” wrote Empower CEO Josh Sear in an email to the Banner Thursday morning.

“To the contrary, drivers are making tens of millions of dollars more per year working for themselves, and riders are saving tens of millions of dollars per year booking rides directly from them,” he continued.

The company in its statement indicated that it would still like to operate in Maryland, but didn’t directly say whether it would request an additional hearing in a bid to keep operating legally.

As of Thursday morning, Empower’s mobile application still appeared to be facilitating rides in Baltimore.

Maryland’s Public Service Commission, which regulates public utilities including rideshare and taxi services, first went after Empower in 2024, alleging that the company had been operating illegally in Maryland for years. The two sides have been locked in a standoff ever since.

Central to the feud is that Empower has not formally registered in the state as a transportation network company, which would subject it to the same regulatory framework — including a requirement to provide commercial auto insurance for drivers — as companies like Uber.

Empower says they shouldn’t have to because they have a different business model — drivers pay for access but keep 100% of the fares they make. That makes them customers, not employees or contractors, according to the company. Empower requires that drivers obtain their own commercial insurance policies.

Regulators have said that their inability to access driver data prevents them from ensuring that no one is using a vehicle with outstanding manufacturer safety recall notices, that they have the correct insurance, and also prevents them from monitoring drivers for any criminal activity.

Empower responded that the commission’s concerns are largely speculative.

Schaeffer, the judge in the case, noted in her ruling on Wednesday that Empower was refusing to provide much of the data that regulators were requesting to check for compliance.

If the shutdown order becomes final, Empower could face steep financial penalties if it continues to operate in the state, as it did in Washington, D.C., after a similar shakeup.