This doesn't entirely make sense, since commute is only a part of the routine. You could say, you wouldn't be taking a shower, so the employer has to pay for the water and the time you spend in the shower, etc.

The employer has no influence on where you live, why would they be paying for it?

If the company is paying for your skills, sitting in traffic is not one of them. So it's up to you to optimise your commute. (I.e. Bike, train, etc.)