EMPOWER: The ridehail startup disruptor taking on the disruptors

More than a decade ago, Uber arrived in cities around the world with a goal to disrupt the market. Uber’s strategy was focused on technology, lower prices and a willingness to challenge the existing rulebook.

The result was one of the biggest shifts the transport sector has ever seen. Traditional taxi firms struggled to respond. Regulators spent years trying to catch up. Consumers embraced the convenience and lower fares. Drivers followed the demand.

Fast forward to 2026 and a familiar story appears to be unfolding in New York City. This time, however, Uber is no longer the outsider. It has become part of the establishment. It operates within a highly regulated framework, pays mandatory fees and surcharges, complies with licensing requirements and dominates the rideshare market alongside Lyft.

Now another company is attempting to disrupt the disruptor. That company is Empower.

A new report produced by ride comparison platform Obi paints a picture of a business gaining significant momentum in New York by targeting the same frustrations that helped Uber rise to prominence years ago: high passenger prices and shrinking driver earnings.

Empower’s approach differs significantly from Uber and Lyft. Rather than taking a commission from every trip, Empower charges drivers a fixed monthly subscription fee, typically between $50 and $350. Drivers then keep the entire fare paid by passengers and are free to set their own prices.

According to the report, Empower drivers retain around 94% of fare revenue, compared with approximately 82% for Uber drivers and 81% for Lyft drivers. For drivers frustrated by rising platform commissions, it is an attractive proposition. For passengers, the appeal is equally straightforward.

The report found Empower was consistently the cheapest rideshare option in New York during the first quarter of 2026. Average trips cost just over $32, compared with nearly $45 on Lyft and more than $46 on Uber. On longer journeys, Empower’s pricing advantage became even more pronounced, with fares per mile between 27% and 44% lower

than competitors.

In a city where rideshare costs have steadily increased through a combination of demand, congestion charges, airport fees and various regulatory levies, savings of this scale quickly attract attention. The report notes that New York riders paid nearly double the national average for rideshare journeys throughout much of 2025.

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Empower has clearly identified a market opportunity. The company is effectively telling passengers they are paying too much and drivers they are earning too little. That message sounds remarkably familiar.

Uber used similar arguments when challenging traditional taxi operators. The company positioned itself as a more efficient alternative that removed unnecessary costs from the system. It promised cheaper rides for customers and new earning opportunities for drivers.

Today, Empower is making a similar case against Uber itself. The report suggests Empower’s growth has been rapid. Within Obi’s New York user base, Empower accounted for nearly a third of rideshare requests during the first quarter of 2026. By March, it had reportedly overtaken both Uber and Lyft within the platform’s searches. Rider loyalty also appears strong, with around three quarters of users becoming repeat customers by the end of the quarter.

Price remains the biggest factor driving that growth. According to survey data included in the report, 79% of Empower users chose the platform because it was cheaper. Nearly 90% of satisfied customers cited pricing as one of the main reasons for their positive experience.

Perhaps even more notable is what riders appear willing to overlook. The biggest challenge facing Empower is not demand. It is regulation. New York City considers the service illegal because Empower does not hold a Taxi and Limousine Commission licence. The company has already received dozens of enforcement actions and is facing legal challenges over its operations. The report also highlights Empower’s long-running disputes with regulators in Washington DC, where the company accumulated substantial fines while continuing to operate.

Yet many riders seem unconcerned. Survey findings showed that 73% would continue using Empower despite knowing it lacks the required licence. More than 70% believe the city should allow the company to operate regardless.

Nearly 68% said they were confident they would still be covered in the event of an accident. That creates an uncomfortable reality for regulators. Historically, licensing and compliance frameworks exist to provide consumer protection and accountability. However, when consumers see large price differences, regulatory arguments can struggle to compete with economic reality.

The challenge for Uber and Lyft is equally significant. For years they have evolved from disruptive newcomers into mature transport platforms. Along the way they have become integrated into regulatory systems and have accepted the costs that come with operating legally in major cities. The report notes that Uber and Lyft fares include congestion charges, taxes, Black Car Fund payments and various city surcharges.

Empower largely avoids these because it does not operate within the same licensing structure. As a result, a far greater percentage of what riders pay goes directly towards the journey itself.

This raises perhaps the most important question in the entire debate Can Empower remain significantly cheaper if it is eventually required to operate under the same rules as everyone else? That remains unanswered.

If forced to comply fully with city regulations and associated fees, Empower’s cost advantage could narrow considerably. Drivers would likely need to absorb additional costs or increase fares. For now, though, riders are judging the service based on what it delivers today rather than what it may become tomorrow.

The broader significance extends beyond New York. The rideshare industry has spent years maturing. Markets that were once fiercely competitive have largely settled into predictable patterns dominated by a handful of major players. Prices have increased. Driver dissatisfaction remains a recurring issue.

Regulatory frameworks have become more established. These conditions often create openings for challengers.

Whether Empower ultimately succeeds or fails, its emergence serves as a reminder that disruption rarely stops. Companies that transform industries eventually become incumbents themselves. Once that happens, they can find themselves facing the same criticisms they once directed at others.

Uber challenged taxis. Empower is now challenging Uber. The report’s findings suggest there is a growing audience willing to support that challenge, particularly when lower prices and higher driver earnings are involved.

History may not be repeating itself exactly, but it certainly sounds familiar.

The difference today is that regulators have seen this film before. The question is whether Empower’s growth can outpace enforcement efforts long enough to establish itself as a permanent player, or whether the realities of regulation will eventually force it to play by the same rules as the companies it seeks to replace.

Either way, New York’s latest rideshare battle feels remarkably similar to one that began more than ten years ago. The names have changed, but the argument remains much the same: consumers want lower prices, drivers want a bigger share of the fare, and somebody is always ready to challenge the status quo.