How a Growth-Stage Company Got Smart about Transit Subsidies

Until recently, commuting costs were an afterthought for most companies—if they considered them at all. But that’s changing fast, as enterprises realize how much uncontrolled spend stems from commuting.

This newfound attention to commuting has led to the rise of Commute Capital Management™ (CCM), an approach that reclassifies workforce commuting as a strategic capital domain, placing centralized oversight under the control of the Finance department. CCM treats commute-related spending as an asset class: one with tangible returns when optimized and real risks when ignored.

Is anyone actually using these benefits?

Offering commute benefits, like free transit passes, is a great way to attract and retain talent. But no company wants to invest in programs that aren’t being used. Choosing wrong can lead to the worst of both worlds: overspending on things nobody wanted to begin with. But knowing what’s needed and what’s actually being used can be surprisingly difficult. Luckily, with the right tools, the answers are clear.

Spending smarter

A growth-stage company Commutifi works with located in a major tech hub knew that offering great commuting benefits was essential in an extremely competitive labor market. But as a company focused on maximizing growth, no dollar should be spent frivolously. How could they ensure they invested wisely? Without a dedicated commuting team, it was hard to know.

The answers were hiding in plain sight—that is, if you knew where to look, and how to analyze what you found. Using data the company already had, Commutifi broke down program costs and adoption rates and came to some surprising conclusions.

At the time, the company purchased transit passes in bulk, through an employer program offered by a local transit agency. It looked like a good deal on its face, but deeper analysis found that doing so was both more expensive and less efficient than it should be.

Moving forward, the company opted for a more strategic approach using a flexible subsidy program powered by Commutifi Transact to grant transit funds directly to employees, both at their central offices and around the world. With the digital wallet, employees could be supplied with dynamic monthly transit stipends, each one tailored to the exact amount they needed to get to and from the office.

Even as employee usage of the subsidy has risen and a major hiring spree has added significantly to subsidy recipients, the company continues to save 28% of what it would have cost to continue running the previous program.

Bring CCM to your organization

Curious about the ways Commute Capital Management can slash your hidden commute spending? Read the definitive guide, or get in touch with one of our experts.