Pay-as-you-go insurance startup Zego drives forward with £1.2m Investment
by Startacus Admin
Insurance Startup Zego, who provide 'pay-as-you-go/ride /drive' insurance cover for drivers working for sharing economy companies, such as Deliveroo, Jinn, UberEATS, and Amazon, have just raised another £1m+ in a seed funding round led by VC firm LocalGlobe.
With pay and working conditions of the gig economy worker currently under review and the traditional insurance sector ripe for disruption - (check also our recent feature on By Miles, an insurtech startup set to launch a pay-per-mile car insurance service), we took a took at Zego with is aiming to help drivers in the on-demand business sector pay for commercial insurance only when they need it.Zego, previously, Tego (Until June this year), was created by people who come from the on-demand economy.
Whilst previously working for Deliveroo, Harry Franks and Sten Saar saw the way in which drivers wanting to work flexibly were constrained by their insurance. Drivers working ten hours per week were paying the same as those working sixty hours - as a result, the cost of this required insurance was too high, and flexible working wasn’t flexible at all.
The solution to Harry and Sten seemed simple - to create a time tracked insurance product that scooter and car delivery drivers only paid for
when they are actively working. Hence, potentially only paying a slice of their normal insurance cover costs. Launched approx 12 months ago, the Zego (then Tego) team quickly grew, with a third co-founder joining in Stuart Kelly as CTO. The end of 2016 saw Zego closing a round of seed funding led again by VC firm Local Globe, and by March the team was twelve strong and over 400,000 driver hours had been insured.
Fast forward to this week, and with another £1.22m in seed funding in the bag for Zego, we reckon this growing startup is on the path...road...track to a very successful rest of 2017 and beyond.
With VC Firm LocalGlobe also recently investing in Cuvva, another InsurTech startup enabling drivers to pay-as-they-drive, it seems there's plenty more room for insurance technology startups looking to offer innovative and alternative solutions to the commercial vehicle insurance sector.
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Published on: 19th July 2017
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