The city will work with two transportation companies to offer monthly subsidies to riders in van pools through $1 million in funding from the state government.

As an incentive to encourage more people to use such ride-sharing operations, each van pool from Enterprise Rideshare and vRide on Oahu will be eligible for $250 per month to split among riders.

“It injects a subsidy to encourage an expansion in van-pooling,” said Mark Garrity, acting director of the city Transportation Services Department.

Garrity said the $1 million in subsidies, provided through the Oahu Vanpool Incentive Program for two years, will require the two companies to provide information about their ridership — facts that, once provided to the federal government, will enable the city to receive an additional $600,000 a year in federal transportation-related funds.

Garrity said the city hopes to have 150 van pools of seven people or more and reduce the number of single-occupant vehicles on the road by 1,050.

Some of the estimated 80 van pools already on Oahu might not qualify for the subsidy because of restrictions on destinations to military bases, the city said.

Chris Sbarbaro, vice president for Enterprise in Hawaii, said a typical van pool consists of a minivan of seven riders going 50 miles round trip. Each person can save up to $10,000 per year when considering insurance, gas, vehicle maintenance and depreciation, the company said in a news release. Riders also qualify for payroll pretax benefits.

Under the incentive program the two companies provide an SUV, minivan or large passenger van as well as maintenance and insurance for the vehicles, city transportation officials said.

The driver of a van pool is able to use the vehicle for personal use on the weekends. A typical agreement requires participants to sign a lease amounting to roughly $1,100 a month in payments for a 30-mile round-trip commute, the city said.

More information about OVIUP can be obtained by calling 543-1526 or emailing RideshareHawaii@erac.com.

For more on ride-share programs offered by the two companies, visit enterprise- rideshare.com and vRide.com.