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Vanpool ridersVanpool Driver Benefits
  • Reduces need to purchase a personal vehicle
  • Receives use of van for personal use
  • Obtains lower vehicle insurance rates
  • Reduces household’s vehicle maintenance costs
  • Requires no long term commitment (typically month to month lease)

Vanpool Rider Benefits

  • Reduces stress as employees arrive refreshed, relaxed, and ready to work
  • Increases access to job market
  • Reduces walking distance from parking lot to worksite (vanpools often enjoy preferential parking at employer sites)
  • Saves money on commute costs such as gasoline, and wear and tear on personal vehicles
  • Encourages new friendships  

Employer Benefits

  • Reduces the need for additional parking
  • Increases access to labor markets
  • Improves employee morale and employee relations
  • Increases productivity, reduces absenteeism and tardiness
  • Provides an effective, low cost recruitment tool
  • Enhances employee benefits packages (tax free subsidies allowed up to $100 per month per employee)

Community Benefits

  • Serves communities not served by transit
  • Requires fewer passengers than a bus
  • Increases federal and state funds to transit
  • Provides a lower cost alternative of serving mid-range and long-distance commuters than transit
  • Reduces rush hour congestion (each 12 passenger van reduces up to 11 vehicles)
  • Improves air quality
  • Reduces dependence on fossil fuels

Commuter Benefits

Internal Revenue Code 132 (f) allows employers to offer participating employees pre-tax deduction for alternative transportation. Employers can reap significant savings as well. The pre-tax deduction could result in the following benefits to employers:

  • Tax savings
  • Payroll savings
  • Reduced disability insurance
  • Lower contributions to 401K accounts
  • May offer transit passes in lieu of compensation
  • May use similar payroll deduction mechanisms to cafeteria plans
  • May require annual program election (not required)
  • No program filing required
  • No “use it or lose it” rule
  • Methods of payment options
  • Transit passes
  • Voucher

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