Personally, I think Lyft credits would be bad, for a number of reasons.
First off, I'm pretty sure that the value of the credit would be taxable, in the same way that wages are taxable.
Specifically, see IRS Publication 15B Section 2, the sub-section on Transportation (Commuting) Benefits (https://www.irs.gov/publications/p15b/ar02.html#en_US_2017_p...). Lyft credits don't to me appear to be one of the four "Qualified Transportation Benefits" (although paid parking _is_). Nor would it be a de minimis benefit.
(To be clear, I'm talking US tax law, as a US corporation.)
So, if it's going to be taxed, then you (as the Lyft employee) now have something which you _have_ to use, or else you're going to lose money (in that you've paid taxes for a benefit you're not using). That's a pressure that I'd personally not want to be under.
Similarly, I wonder if a permanent discount (all Lyft employees get 50% off) would also be taxable. Since this is all electronic, I don't think it would be that hard to track an employee's Lyft usage, so I don't think the de minimis exception would apply here. Then, come each paycheck, I'd have to remember "Oh, right, I have less money this pay period because I did all those extra Lyfts over the weekend."
Continuing the thought experiment, if Lyft did do this, then I most definitely would _not_ want to work or live near Lyft's offices. The reason is, any time I'd want to use Lyft, I'd be competing with all of the Lyft employees who are also using the service. I could see that increasing the chances of surge pricing switching on. That could maybe be minimized by nudging drivers to congregate around Lyft's office, but that would then deprive other areas of drivers.
Lyft credits don't to me appear to be one of the four "Qualified Transportation Benefits"
Lyft and Uber have already solved this. They've partnered with a bunch of the employee-benefit debit-card providers so that people can use employer-provided commute benefits. The guidelines as I recall from when I saw it announced are that you have to use Lyft Line/Uber Pool and vehicle has to have at least 6 seats, and both Uber and Lyft have tweaked their apps to ensure that they recognize benefit-debit cards and only let you use them on rides that meet IRS guidelines for commute benefits.
Ah! I see, and yes, that would qualify in the "Transit Pass" section, although it's really at least seven seats (the driver can not occupy one of the six seats). More specifically, it's "In a vehicle that seats at least 6 adults (not including the driver)".
That makes me wonder, although the problem is solved from the technological & regulatory sides, how many of those types of vehicles are there. I guess that's why this option is only available in four cities.
First off, I'm pretty sure that the value of the credit would be taxable, in the same way that wages are taxable.
Specifically, see IRS Publication 15B Section 2, the sub-section on Transportation (Commuting) Benefits (https://www.irs.gov/publications/p15b/ar02.html#en_US_2017_p...). Lyft credits don't to me appear to be one of the four "Qualified Transportation Benefits" (although paid parking _is_). Nor would it be a de minimis benefit.
(To be clear, I'm talking US tax law, as a US corporation.)
So, if it's going to be taxed, then you (as the Lyft employee) now have something which you _have_ to use, or else you're going to lose money (in that you've paid taxes for a benefit you're not using). That's a pressure that I'd personally not want to be under.
Similarly, I wonder if a permanent discount (all Lyft employees get 50% off) would also be taxable. Since this is all electronic, I don't think it would be that hard to track an employee's Lyft usage, so I don't think the de minimis exception would apply here. Then, come each paycheck, I'd have to remember "Oh, right, I have less money this pay period because I did all those extra Lyfts over the weekend."
Continuing the thought experiment, if Lyft did do this, then I most definitely would _not_ want to work or live near Lyft's offices. The reason is, any time I'd want to use Lyft, I'd be competing with all of the Lyft employees who are also using the service. I could see that increasing the chances of surge pricing switching on. That could maybe be minimized by nudging drivers to congregate around Lyft's office, but that would then deprive other areas of drivers.
So too many problems, in my opinion.