Dear Friend,
It is always true that employees want to take the fruits from the tree and also eat the ones that have fallen on the ground. Similarly owners not only want the fruits on the tree but also collect all those on the ground. It is when both parties insist on taking more than their respective fair share that we have industrial unrest. Hence in your case the employee wants to travel to and fro from home to work/office gratis at company's cost and employers wants to minimise the cost of conveyance by denying the employee the home to work conveyance from being gratis and loaded on the company expenses. What is the fair share of this cost that the employee should bear from his meagre salary and what should the rich employer bear? Is that right?
As an HR professional of over 30 years I suggest that you do some homework. i.e. what is the cost of bearing the conveyance cost vis-a-vis the cost of a work stoppage, harm to the company's goodwill by a disgruntled employee, employee trying to make up the loss of that conveyance reimbursement by some other means difficult for you to monitor, the additional cost of manhours in calculating the distances travelled minus distance from residence to office everytime locationwise on daily basis, the damage to the the psychological fabric of the employee over such a move, etc.,etc.
I can assure you that the savings you plan to get will be far outweighed by the "costs" to the business overall.
Think over it and then decide.
What should be done is dont stop this benefit to all because some few maybe abusing the benefit but catch those few culprits and give them examplery punishment and if the others object ask them what would they prefer- a general clampdown on the benefit or the their acquiescence to the punishment of the culprits.
Hope you will find my treatise of the matter useful. The decision is yours and your management's.
Regards,
UG