From left, Becky Ramirez, Alicia Reynen and Jesse Reynen on April 24, 2022, show the Let’er Uber vehicles they drive in Pendleton. The city council on June 17, 2025, approved a new ordinance requiring Uber drivers from outside Pendleton to obtain a city business license before operating locally, aiming to protect local ride-share operators. (Antonio Sierra/Oregon Public Broadcasting, File)

Out-of-town Uber drivers now have to buy city business licenses to work in Pendleton

PENDLETON — Uber drivers from outside Pendleton now must obtain a city business license before operating locally, under a new ordinance that protects local ride-sharing businesses.

The Pendleton City Council on June 17 on a 7-0 vote passed Ordinance 4036, requiring all Uber drivers to hold a valid city business license. Alicia Reynen, an independent Let’er Uber driver, said the new business license rules will help enforce local regulations and prevent outside drivers from taking fares from licensed drivers.

“It’s going to stop all the other drivers from coming into town and stealing business from the people that have business licenses because no one wants business stolen,” Reynen said.

Local Uber drivers, including Reynen, say they feel the financial strain each year, particularly during major events such as the Pendleton Round-Up and Pendleton Whisky Music Fest as many drivers from Hermiston, Yakima and nearby communities flood into town to pick up passengers, cutting into local ride-hailing businesses.

Reynen and Pendleton Finance Director Josh Ernst presented the issue to the city council and helped revise portions of the ordinance’s language, amending the city’s “vehicles for hire” ordinance at the request of Uber Technologies Inc. and local drivers.

“We presented the ordinance to the council after updating the language,” Ernst said. “Back when Uber first launched in Pendleton, we drafted the ordinance to encourage compliance with local licensing. But the original version didn’t clearly place enforcement responsibility on Uber.”

As a result, some Uber drivers operated within Pendleton without a city license, while those who complied with the ordinance faced a disadvantage — especially during major events, Ernst said.

To close the loophole, city officials worked directly with Uber to clarify the enforcement mechanism. Uber informed the city that it would not require drivers to submit proof of a Pendleton license unless the ordinance specifically mandated it.

“We updated the ordinance to require that Uber only allow licensed drivers to accept rides within the city’s geofenced limits,” Ernst said. “Now, Uber must verify a driver’s license through its app before they can operate in Pendleton.”

Pendleton Mayor McKennon McDonald said the updated ordinance helps level the playing field for local Uber drivers who have followed the city’s licensing requirements.

“This impacted people who had gone through all the appropriate channels to operate legally in our community,” McKennon said. “Meanwhile, others would come in during large events without following those steps.”

McDonald added similar rules are in place in larger municipalities, such as the Portland metro area, noting Uber has the ability to enforce licensing requirements through its app but must choose to activate that feature.

Ernst said he recently sent the updated ordinance to Uber and the company’s regulatory team in Oregon. He said he expects it may take a few weeks — possibly up to a month — before the company reviews and implements the changes. He said his intent was to have everything in place before the Pendleton Round-Up in early September, and it likely will not be resolved in time for the Pendleton Whisky Music Fest, which is July 12.

“I’m hopeful Uber will have the platform updated before Round-Up, since that’s when the issues have been most problematic in recent years,” he said.

Reynen described local Uber drivers as “ecstatic” about the updated ordinance. She also encouraged community members to avoid drinking and driving by using Uber, calling a friend or taking a taxi.

To obtain a business license, Uber drivers can now access the application on the city of Pendleton’s website. Pendleton-based drivers must pay a $105 fee, while out-of-town drivers will pay an increased fee of $165.

During the city council meeting, no members of the public spoke for or against the proposal during the meeting.