In the last 12 months its turnover of policies for the gig economy has grown by 900%, reports TechCrunch. Impressive, also for the investors who rushed to support the further acceleration of the growth of this London insurtech startup with a substantial round of 42 million dollars (led by the pan-European investment company Target Global, specialized in financial technologies and mobility, with other financiers, including the founder of TransferWise Taavet Hinrikus), which have been preceded in recent years by a first million dollars, and then 6 million dollars. The proceeds will be used for Zego’s expansion in Europe and to increase the workforce from 75 to 150 employees.
Zego targets new mobility services, such as ride-hailing, ridesharing, car rental and scooter sharing, and offers a range of policies from minute to minute insurance to annual coverage, providing greater flexibility than traditional insurers, with prices based on vehicle usage data. This means that it has become popular with scooter and car drivers, as well as fleets of vans and taxis. The company currently supplies one third of the UK food delivery market, largely through partnerships with Deliveroo, Just Eat and Uber Eats. That’s what happens when you intercept an discovered market by populating innovative policy models, as Sten Saar, CEO and co-founder of Zego, points out: “When we built Zego from scratch three years ago, our mission was to transform the insurance industry by creating products that truly reflected the rapidly changing world of transportation…. The world is urbanizing and for this reason, we are moving from traditional vehicle ownership to a shared “usership“. This means that the rigid insurance model that has existed for hundreds of years is no longer fit for purpose.
Ben Kaminski, partner of the main Target Global investors, said: “With the growth of new mobility services, Zego has identified a major gap in the insurance market and created a unique business model to fill, which incumbents will find very difficult to replicate. The potential of this company is almost limitless, and I expect to see its success in the UK reflected across Europe and beyond in the coming years.All rights reserved