Pendleton area Uber drivers have earned the right to keep driving indefinitely.
The Pendleton City Council unanimously this week voted to end a trial period for Uber and other ride-hail services, allowing local drivers to operate without any restrictions.
The East Oregonian first reported Uber’s local approval.
While ride-hails have been a staple of urban transportation for years, their slow spread into rural areas has come with some pushback. When Pendleton residents lobbied the City Council to change its laws and allow for ride-hails over the summer, Elite Taxi, the city’s only taxi company, told the council that it would be unable to survive a new wave of competition.
With Elite Taxi holding contracts with the city to operate some of its critical public transportation programs, the council hammered out a compromise where ride-hailing services would undergo a trial period that ran through September. At the end of the trial, the council said it would revisit the issue to determine whether taxis could remain financially viable in the ride-hail app era.
The burden of proving financial hardship fell on Elite Taxi, but Mayor John Turner said the business provided no documents and didn’t show up to this past Tuesday’s meeting where the council made the decision.
Becky Ramirez, left, Alicia Reynen, and Jesse Reynen stand in front of one of the cars used by Let'er Uber, an informal group of Uber drivers who work in Pendleton. The trio was surprised to learn that the owners of a competing taxi company had registered the group's name with the state.
Antonio Sierra / OPB
Elite Taxi owners Rod and Matthew Johlke did write a letter to the council asking for a six-month extension for the trial period.
The father and son pair wrote that their taxi service was no longer “financially profitable,” not only because of the introduction of services like Uber, but also because of inflation, high fuel prices and the lingering effects of the COVID-19 pandemic. They added that their business was surviving due to private contracts it holds for services like pharmacy deliveries.
The Johlkes also included a litany of accusations without evidence against a group of Uber drivers, including saying they offered under-the-table rides and soliciting rides outside the Uber app.
“Whatever the reason is, it is in violation of the Uber platform and if allowed to continue, Elite Taxi cannot stay viable, the consumer is not being protected and our community will … end up being subjected to Ubers uncontrolled surge pricing … with no other options,” they wrote.
There were periods of tension between Elite Taxi and a group of drivers called Let’er Uber during the trial period. In August, Let’er Uber drivers expressed confusion when the Johlkes registered a limited liability company called Let’er Uber with the state. The taxi owners never explained why they made the move, but the drivers’ group changed its name to Let’er Uber Pendleton Oregon and continued operating.
Becky Ramirez is a driver affiliated with the Let’er Uber group and attended the council meeting to support continuing ride-hails in Pendleton. She said the taxi company failed to provide proof that it was hurt by Uber.
“I guess either we weren’t a detriment to their financial stuff, or they just didn’t get their ducks lined up in a row,” she said.
Ramirez said Uber drivers performed well during the Pendleton Round-Up, the region’s biggest tourism event, and were already being asked to help out at future events. She hopes the city lifting its time limit on ride-hails will lead Uber to expand its options in Pendleton to include food deliveries and scheduled pick-ups.
Despite the council being unswayed by Elite Taxi’s arguments, Mayor Turner said he hoped the taxi company and Uber drivers will continue to co-exist.
