Under IRS Section 132 guidelines, standard rideshare services such as Uber and Lyft do not qualify as eligible Commuter Transit expenses. As of 2024, this includes all rideshare options, including Uber Shared and Lyft Shared.
Update: Changes to Rideshare Eligibility for Commuter Benefits
Rideshare companies have changed how shared rides are dispatched. Because these services no longer consistently use vehicles that meet IRS requirements or provide the reporting needed to verify compliance, Uber Shared and Lyft Shared are no longer eligible expenses for Commuter benefits.
The IRS requires commuter highway vehicles, often referred to as vanpools, to seat at least six adults excluding the driver and meet specific operational requirements.
How does this impact your Lively Commuter benefit?
Card transactions: transactions for Uber, Lyft, and other rideshare services will be declined when using your Lively Commuter benefit.
Reimbursements: manual reimbursement requests for rideshare services, including shared ride options, will not be approved.
What is still eligible?
Formal vanpool services (e.g., Enterprise Vanpool) that are specifically designed for commuting and meet the IRS 6-adult seating capacity remain fully eligible.
Updated: