honcho Packs Its Bags & Heads Home

Sad news from start-up honcho, which looked to change the car insurance market by getting drivers to auction their business to brands, rather than relying on comparison sites to give them the best deal. As recently as March 2022 honcho had agreed a partnership with Churchill to extend its brand reach.

A statement on their website reads;

“After 3 years of trading we are reluctantly packing up honcho’s reverse auction marketplace.” The statement adds that “we’ve found it difficult to acquire customers in a very competitive space.”

The FCA rule change on loyalty discounts being applied can’t have helped honcho’s sales pitch either. The regulator is essentially rewarding the `do nothing’ approach by consumers who feel disinclined to spend time shopping around the better value cover.

For investors it’s a tough day. Some £893,000 was raised via Crowcube. Maven put in about £950,000. Durham County Council and the EU also put taxpayer cash into honcho. Some £1.4m came in via the Seedrs platform too.

IE sends its best wishes to everyone who invested in the future with honcho, customers, investors and staff. You gave it a shot – and that’s always to be admired.

 

 

About alastair walker 9298 Articles
20 years experience as a journalist and magazine editor. I'm your contact for press releases, events, news and commercial opportunities at Insurance-Edge.Net

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