Uber has announced a partnership with Parkmerced, an expanding townhome and apartment complex adjacent to San Francisco State University, which gives new residents who don't have cars a monthly $100 stipend as a way to encourage “car-free living.”

Residents must use at least $30 of the subsidy toward Uber rides, and they’ll pay a flat fee of $5 to travel from the residence to the nearby BART and MUNI stops. The remaining $70 will be auto-loaded to a Clipper Card, which can be used on nearly all of the Bay Area’s transit systems. The subsidy will last for the duration of the lease, up to two years.

“The immediate benefits to residents will be to decrease or eliminate the need for private car ownership, facilitate a more efficient commute, reduce transportation costs, and minimize the need for parking,” Rob Rosania, founder of Maximus Real Estate Partners, the developer of Parkmerced, said in a statement. Parkmerced is paying for the subsidy, not Uber.

The idea is to get higher-income people who otherwise would own cars to use public transit more. US Census records show that the average household income in this zip code is over $90,000 per year.

Uber added in a statement: "We’re excited to kick off this program and take another step toward a future where car ownership is the exception, not the norm."