Regulators Seek $36 Million Penalty From Rideshare App

App-based transportation operators in Maryland face a recommended penalty and fines while unregistered driver-platform models are contested.

Updated on Nov. 3, 2026 in Utilities

Regulators Seek $36 Million Penalty From Rideshare App

Live Poll

Do you feel safe riding with apps that don't verify driver insurance?

Maryland's Office of People's Counsel has recommended a civil penalty of more than $36 million against rideshare app Empower, which has refused to register with the state as a transportation services company. The recommendation comes after the Public Service Commission made a cease-operations order final, a step that matters for ride-hailing firms and the drivers who rely on their platforms in Maryland.

Why it matters

Regulators say they cannot verify that Empower drivers are properly licensed or that their vehicles carry correct insurance coverage, which is the core of the enforcement dispute. The case shows how a platform that classifies drivers as customers rather than employees or contractors can run into state transportation rules.

The recommended penalty totals more than $36 million, with an added $1 million per day while Empower keeps operating, and the company reports about 300,000 weekly customers in Maryland, roughly half of the state's for-hire rides. The Commission has not yet set a decision date on the proposed fines.

The players

Empower

A ride-hailing app that connects drivers with riders and classifies drivers as customers of its software rather than employees or contractors.

Maryland Office of People's Counsel

The state consumer-advocacy office that recommended the civil penalty against Empower in this proceeding.

Maryland Public Service Commission

The state regulator that oversees transportation services companies and made the cease-operations order against Empower final.

Amy Schaeffer

A Public Utility Law Judge who ordered Empower to cease operations in Maryland while the case continued.

The details

Empower's software links drivers with riders, and the company treats drivers as customers using its software rather than employees or contractors. Empower does not provide commercial auto insurance and instructs drivers to buy appropriate coverage on their own. Regulators argue this structure leaves the state unable to confirm licensing or vehicle safety for the drivers operating through the app.

July: Public Utility Law Judge Amy Schaeffer ordered Empower to cease Maryland operations while the case continued.
September: Empower executives wrote to regulators about ride volume.
Friday before publication: The Public Service Commission made the cease-operations order final.
Last week before publication: Regulators filed recommended fines before the Commission.
Monday: Empower's app still showed drivers available for rides in Baltimore.

Market Landscape

The dispute places Empower against Maryland's transportation-services registration framework, a state rule that applies to ride-hailing firms operating in the state. How the Commission resolves the proposed fines will signal how state regulators treat platforms that structure driver relationships outside traditional employment or contractor categories.

Operators running app-based transportation or delivery businesses should review how their driver classifications and insurance arrangements match state registration rules. Businesses that depend on platform-based driver labor should consult qualified counsel on licensing and insurance compliance before the Commission rules.

The takeaway

Watch how the Public Service Commission rules on the proposed fines, since the decision will set a practical benchmark for how Maryland treats platforms that do not register as transportation services companies. Businesses in this segment should have qualified counsel review their driver classification and insurance compliance now.