Ride-hailing platform Empower's CEO, Joshua Sear, leads a rally while hundreds of Empower's drivers gather in front of the D.C. Court of Appeals in March. (Aashish Kiphayet/AP)
WASHINGTON - Joshua Sear, CEO of the ride-hailing service Empower, agreed in court on Tuesday to shut down operations in D.C. after being threatened with jail time, per The Washington Post.
Sear has two weeks to shut down operations.
Tuesday's development comes following a years-long battle over whether the company has to follow the same regulations that Uber and Lyft do, including warnings and fines in recent months.
According to the Post, Sear was told by Judge Shana Frost Matini that if he failed to end services in D.C., he'd be jailed for contempt of court.
"Tens of thousands of drivers using Empower to work for themselves have provided over 13 million rides to over 350,000 riders. The only harm any court has ever found in connection with Empower has been the District’s illegal impoundments of drivers’ vehicles, which the District recently ceased," Empower said in a statement provided to FOX 5 DC. "Empower will continue to do everything it can to ensure drivers and riders in D.C. have the ability to use its software."
Legal implications
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According to the company, Empower's goal is to disrupt the taxi industry, just like other ride-hailing apps, which are sometimes able to offer rides for less money than traditional taxis. The company operates in D.C. and in Winston-Salem, North Carolina.
Empower drivers set their own rates and get 100% of the fare, according to the company's website, in comparison with Uber or Lyft, which take 20% to 30% of the rider's total payment.
"By decentralizing rideshare, drivers earn more, and riders pay less and can feel safer requesting a favorite or a same-gender driver," according to Empower.
Companies like Uber and Lyft initially began operating without official licenses, but for about the last decade, they've agreed to government regulation. But Sears has argued that Empower is more akin to a food or travel reservation company like Expedia or OpenTable than a rideshare company.
The Source: Information above was sourced from The Washington Post, The Washington Times, Colpitts Clinical and the company's website.