In an effort to challenge the dominance of Uber and Lyft in New York City’s ride-hailing market, Korean tech executive Kay Woo has launched a new app called Throo through his company, TADA. Since March, Mr. Woo has aggressively recruited drivers—mainly taxi and for-hire vehicle operators—in an attempt to provide an alternative platform that offers lower commissions and reduced fares.

Throo, which began operating in New York this June with official authorization, charges drivers a fixed fee of $1 or less per ride, a significant reduction compared to the approximate 20 percent commission taken by established apps. This model aims to increase drivers' earnings while making rides more affordable for passengers. For example, a trip from Manhattan’s Port Authority Bus Terminal to Kennedy International Airport costs $80 on Throo, whereas Uber and Lyft charge around $134–$136 for the same ride.

TADA, a Singapore-based company, has found success in Southeast Asia by using similar tactics, and Mr. Woo hopes to replicate that in New York. The city’s ride-hailing industry is a multibillion-dollar market, with Uber and Lyft accounting for roughly 80 percent of all trips, according to the New York City Taxi and Limousine Commission (T.L.C.). New entrants like Throo are attempting to break the near-duopoly, which emerged after ride-hailing apps surpassed the traditional yellow taxi industry more than a decade ago.

Despite these efforts, Throo faces significant challenges. Newcomers in the city’s ride-hailing sector risk operating at thin margins or running afoul of regulatory requirements, as demonstrated by the legal battle involving the rival app Empower. Empower’s parent company, Yazam Inc., is accused by city officials of operating without proper licensing, avoiding fees, and endangering passenger safety. The T.L.C. has sought an injunction to stop Empower’s operations, warning that drivers and passengers could face fines or insurance risks. Empower denies these allegations and claims willingness to comply with city requirements.

Drivers have expressed frustration with current platforms, citing concerns about declining pay and arbitrary deactivations—when a driver is removed from the platform. Some have been drawn to Throo’s lower-fee model and promise of better earnings. Antonio Rivera, a 50-year-old driver from the Bronx, said Throo offers a notably higher payout on some fares compared to Uber and Lyft. However, others, like driver Waseem Manzoor, reported discontinuing use of Throo after a few months due to inconsistent earnings.

Industry advocates remain cautious. Bhairavi Desai, executive director of the New York Taxi Workers Alliance, which represents more than 28,000 drivers, expressed skepticism about TADA’s claims, pointing to past instances when established platforms initially lured drivers with incentives that did not endure. Other attempts to compete with Uber and Lyft, such as Via and Gett’s former Juno app, have also failed to maintain a foothold in the city market.

Mr. Woo acknowledges the obstacles but is optimistic that scaling operations will lead to profitability and a sustainable driver-friendly business model. Throo has attracted over 50,000 drivers and served more than 35,000 riders since its launch, but still processes only a few hundred rides daily. Reaching a target of 10,000 rides per day next year is seen as crucial for the company’s long-term viability.

As New York’s ride-hailing landscape evolves, the entrance of new platforms like Throo reflects ongoing tensions between drivers seeking better fares, passengers looking for affordable alternatives, and regulators striving to ensure safety and compliance. How these dynamics will shape the future market share remains to be seen.