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Riders in some cities can now use pre-tax dollars to pay.

By Kirsten Korosec
January 25, 2017

Lyft is partnering with a number of employee benefits firms, including WageWorks and Zenefits, to let riders use their pre-tax dollars to pay for carpooling rides to and from work.

The pre-tax perk will be available to users starting Wednesday in Boston, Miami, New York, and Seattle. Lyft says that riders who use the pre-tax dollars to pay for its carpooling rides can save up to 40%.

The savings benefit aims to bring increase ridership as Lyft tries to boost revenue and compete with rival Uber. Lyft lost about $600 million in 2016 and generated $700 million revenue, 250% percent more than the previous year, technology news site The Information reported earlier this month.

Lyft says it will extend the offer to other cities soon without providing a timeline or naming future sites.

Lyft is working with WageWorks, TransitChek, Benefit Resource, Commuter Benefit Solutions, Navia, and Zenefits.

The move by Lyft follows a similar benefit rolled out by Uber through a partnership with WageWorks. Uber announced in August a partnership with WageWorks that will let users in New York City—and eventually Chicago, Philadelphia, and San Francisco—to use pre-tax dollars to pay for rides on its carpooling service UberPool.

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