Insurance market disruptor Zego has announced extra funding, to the tune of a humungous $42 million today. Yes, 42 big ones. The cash will be used to expand the Zego brand, double the workforce to 150 people, expand into EU territories, plus enhance the product range. This start-up is really revving its engine now.
Zego’s core aim seems to be to tap into the whole ride-sharing, rent your car/bike ethos, rather than old fashioned ownership of vehicles. That will suit lots of urban travellers, who don’t have the room to park a car, scooter or motorcycle, but do have access to one – even if it is just for work.
But the delivery rider/driver insurance market is perhaps short-lived, if Amazon, eBay, Google and others all perfect drone delivery and governments open the skies to such operations. Uber, Amazon and Google have all been testing drones, and seeking FAA approval in the USA to conduct test flights in densely populated areas – so Zego may well need another few strings to its bow within say 5-10 years.
There are lots of other pay-per-mile, or PAYG options within the motor sector, such as classic bike and car owners, who often ONLY venture out on sunny days. Then there are touring motorcycle riders who simply need insurance for three or four big trips per year, because the rest of the time the big BMW is garaged and hooked up to an Optimate.
Let’s not forget commuters who are keen to choose electric vehicles and due to the charging times involved, will not actually be mobile in traffic for long journeys – that alters the risk profile enormously.
Zego has a huge opportunity and now it has the money to pursue those potential customers.
Back in May Zego launched motorcycle insurance on bikes up to 500cc. Available as a 30-day or annual policy, the cover includes traditional Social, Domestic & Pleasure (SD&P) insurance for personal riding, plus Hire & Reward (H&R) insurance for food delivery or courier work – this is an expanding market, as the gig economy makes Amazon drones of half the workforce.
Wait, there’s more; Zego’s Motorbike insurance lasts for as long as you need it. That’s right, it isn’t just a take-it-or-leave-it annual policy – at blinking last!
This is a long overdue change and those bikers who prefer to ride a more modest A2 category machine, say between May-October, and then hide their machine away in the shed over winter, will be delighted that the Fully Comp cover only kicks in when you need it.