New Obi report claims unlicensed rideshare app Empower is undercutting Uber and Lyft by up to 30% in New York City while rapidly gaining rider loyalty
- Perry Richardson
- May 29
- 2 min read
A new report from rideshare comparison platform Obi suggests Empower has become a fast-growing challenger to Uber and Lyft in New York City, offering significantly cheaper fares and higher driver earnings while operating without a Taxi and Limousine Commission (TLC) licence.
The report, titled Empower Takes On New York, analysed more than 7.8 million ride offers linked to nearly 95,000 ride search events between January and March 2026. Obi said Empower accounted for almost a third of all rideshare requests made through its comparison app during the first quarter, before overtaking both Uber and Lyft by March.
Empower operates using a different business model to established rideshare firms. Rather than taking a commission from every trip, the company charges drivers a monthly subscription fee ranging from $50 to $350 while allowing them to retain the full passenger fare. The report said this structure has enabled drivers to keep around 94% of fare and tip revenue compared with roughly 82% for Uber and Lyft drivers.
The pricing gap appears central to the platform’s growth. Obi data showed Empower rides averaged $32.12 in New York during Q1 2026, compared with $44.91 for Lyft and $46.23 for Uber. The report also found Empower trips cost between 25% and 35% less per mile than comparable rideshare products across most journey lengths.
Obi linked part of Empower’s pricing advantage to its lack of TLC licensing. Without a licence, the company is not currently collecting congestion surcharges, sales tax and other city fees routinely added to Uber and Lyft fares. The report noted that if regulators eventually force Empower into compliance, fares may need to rise or driver earnings could fall.
Despite that regulatory uncertainty, rider sentiment appears largely favourable. Obi’s survey of 179 Empower riders found 79% selected the service primarily because it was cheaper, while 73% said they would continue using it despite the licensing dispute. Around 71% also supported allowing Empower to operate in New York even without a city licence.
The report also found Empower’s operational performance was broadly comparable with major competitors. Average pickup times were 165 seconds for Empower compared with 156 seconds for Uber and 153 seconds for Curb taxis. Obi said the findings indicated Empower had already built sufficient driver supply to compete directly with established operators despite its newer market presence.
However, Empower’s expansion remains overshadowed by ongoing legal action. The report states New York City sued the company in March 2026 alleging it was operating as an unlicensed dispatcher and avoiding mandatory fees and surcharges. Empower has faced similar disputes in Washington DC, where the company accumulated roughly $50 million in unpaid fines over several years before agreeing to halt operations following legal pressure.
The findings highlight growing pressure on New York’s established rideshare market, where rising fares and driver dissatisfaction have created opportunities for lower-cost alternatives. Obi said average rideshare trip prices in New York remained consistently $15 to $20 higher than the US national average throughout 2025, peaking at $77 during a December surge.
Whether Empower can sustain its growth may ultimately depend on the outcome of its legal fight with regulators. But the report indicates the company has already disrupted rider expectations around pricing and driver earnings in one of the world’s most tightly regulated rideshare markets.
