Metromile is a San Francisco-based car insurance startup that operates an online quote and application process. The company disclosed a security breach in an SEC 8-K filing after a website bug allowed a hacker to obtain driver license numbers. Metromile said the bug was in its quote form and application process and that it is unclear how many individuals were affected or exactly how the access occurred. The company stated it released software fixes, notified its insurance carrier, continued operations, and is working with security experts and legal counsel to identify containment and remediation measures and to notify affected individuals, law enforcement, and regulatory bodies as appropriate. Separately, Metromile confirmed a $50 million investment from former Uber executive Ryan Graves, who will join the company's board. Weeks earlier the startup had announced plans to go public via a SPAC in a $1.3 billion deal. Metromile is a San Francisco-based car insurance startup that leverages technology and a pay-per-mile insurance model to price policies based on miles driven. Its offering includes data to help customers optimize how they use their car and instant access to detailed vehicle diagnostics through a driving app. Led by CEO Dan Preston, the company is currently available in eight states: Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia and Washington. Metromile plans to use the new funding to expand its pay-per-mile insurance product and to simplify every step of the insurance experience. It intends to deploy artificial intelligence in claims processing as part of that simplification. The company also announced the appointment of Stacy J. Smith as an independent director to its board. Metromile offers usage-based, pay-per-mile auto insurance that bills customers a base rate plus a per-mile charge using a small Metromile Pulse device and a mobile app with vehicle location and travel data. The company emphasizes that it rates solely on miles driven rather than broader behavioral telemetry and says typical low-mileage customers save about $500 per year. It has licenses to operate in all 50 U.S. states, currently underwrites in New Jersey, Oregon, Pennsylvania and Virginia, and plans to expand underwriting to California, Illinois and Washington. Metromile was founded in 2011 and had previously raised roughly $14 million prior to the new funding. The company partners with platforms such as Uber for certain coverage options and sees opportunities in connected, autonomous, and shared-ownership vehicles. The new capital will be used to acquire Mosaic Insurance to bring underwriting in-house, accelerate state rollouts, and continue building its platform. MetroMile sells insurance priced largely per mile and distributes a free Metronome plug-in device plus a mobile app that delivers driving analytics, route and gas-cost insights, and basic vehicle diagnostics. The Metronome plugs into the car’s diagnostic port (models since 1996), uses GPS and cellular to relay miles, diagnostic codes and trip data to an iOS app (Android in development). Pricing combines a base charge with a per-mile rate averaging roughly 2–4 cents; customers who drive under 10,000 miles a year have tested to save about $400 annually, with daily-mile caps for road trips. MetroMile white-labels the insurance from a major carrier (the carrier carries risk and pays claims) and receives a cut of premiums. The company completed an alpha in Oregon and is launching a private beta in Washington while distributing 10,000 devices, and is pushing approvals to expand to more states by early 2014. Future plans described in the article include extending services into car maintenance help and gas-price recommendations to deepen customer value.

Total raised

$346M

Funding rounds

4

Latest round

Equity

Latest activity

Feb 2021