Zego provides tech-enabled commercial motor insurance spanning pay-as-you-go cover to annual policies for self-employed drivers, riders and fleets. The company combines telematics, driver behaviour and working-habits data to price policies, claiming it collects five times more data per vehicle (about 50 data points per second). Zego earned its own insurance licence in 2019 and has integrated with partners such as Uber, Ola, Bolt, Deliveroo, Uber Eats and Just Eat; it also works with e-scooter operators Tier, Voi and Dott. The firm acquired telematics vendor Drivit late last year and says it is now focusing on fleet insurance as a growth area. Operating metrics reported include more than 17 million policies issued and over 200,000 vehicles covered across five countries. Zego plans to rapidly expand across Europe and beyond, double headcount from 265 to over 500 by end of 2021, and continue investing in its technology. Zego builds flexible insurance products for new mobility services—minute-by-minute cover up to annual policies—with pricing based on vehicle usage data. Its initial products targeted scooter and car insurance for food delivery workers and have been adopted by drivers and fleets. The company claims 900% growth over the past 12 months and currently insures one-third of the U.K.'s food delivery market through partnerships with Deliveroo, Just Eat and Uber Eats. Zego plans to use new proceeds to expand across Europe and roughly double headcount from 75 to 150. The firm has raised capital to scale distribution and product coverage for ride-hailing, ridesharing, car rental and scooter-sharing customers. Zego builds pay-as-you-go commercial insurance that charges drivers by the hour so they only buy cover while logged in to on-demand delivery platforms. Its first products are hourly scooter and car policies for food-delivery workers, with the app able to connect to delivery platforms so cover activates automatically. The company is exploring telematics and using location/work data to refine risk assessment and pricing. Zego plans to launch additional insurance products (including personal injury and sickness cover) and to expand internationally. Founded in 2016 by Harry Franks, Sten Saar and Stuart Kelly, the startup says it will use new capital to grow engineering and other headcount. The business model targets gaps created by platform-driven gig work and platform requirements that drivers hold commercial insurance. Zego (previously known as Tego) provides pay-as-you-go insurance for drivers and riders working for sharing-economy companies such as Deliveroo, UberEATS, Jinn and Amazon. Customers pay via an app or top-up card only for the hours they work. The insurance is fully underwritten by Aviva; scooter fees start from 65p an hour up to £25 a week, while car cover can cost as little as £1 an hour. The small-engine scooter product is available across the UK, with the biggest demand in London and other large cities. To date Zego has written 400,000 hours of cover for drivers. The company intends to use the funds to continue developing its tech platform and to increase its technical team. It is led by co-founders Harry Franks (CEO), Sten Saar (COO) and Stuart Kelly (CTO) and is based in London.

Total raised

$202M

Funding rounds

4

Latest round

Series C

Latest activity

Mar 2021