Startup of the Week: Zego

Our Startup of the Week is Zego! Founded in 2016 by Deliveroo directors Harry Franks and Sten Saar, Zego provides insurance policies fit for the 21st century.

Whilst working for Deliveroo, the two found it difficult to onboard delivery riders, as they had to be insured with an expensive annual policy before getting an interview.

The cost of this cover has been a major struggle within the gig economy, commercial vehicle insurance for scooters costing anything between £2,000 to £3,000 per year. This has put off many prospective freelancers, and restricted the gig economy from reaching its true potential.

This is when Franks and Saar had an idea; offer pay-as-you-go insurance that’s both affordable and flexible to suit the needs of those in the gig economy.

In under four months, the co-founders had found an insurer to help make their ideas a reality, alongside technical co-founder Stuart Kelly finishing their mobile app. From this came Zego’s first sale, a £2.30 policy.

 

 

To date, the firm have received a total funding amount of $51.7 million, and are now backed by an impressive team of investors, including LocalGlobe, Balderton and Target Global. A large contributor to their total funding amount has been their Series B funding round in June last year – raising $42 million. This has become one of the biggest funding rounds ever seen for a European startup in insurtech.

Since its creation, Zego has been breaking down outdated insurance barriers, helping to revolutionise the way people live, travel and work. Through its mobile app is offered easy, flexible policies that can cover various different industries of all shapes and sizes.

Zego now provides cover for fleets, drivers and riders. For drivers and riders, the startup offers private hire insurance, scooter insurance, car insurance and van insurance. It also has a kick scooter cover coming soon. The company are continuing to launch products and expand these to more and more countries, claiming that their team “won’t stop short of global success.”

The startup aims to be the “largest and best-loved provider of insurance solutions for new enterprise” believing that “The world is rapidly becoming urbanised. Because of this, we’re moving from vehicle ownership to shared usage. The traditional, rigid model of insurance that existed for hundreds of years is no longer fit for purpose. At Zego, we’re extremely proud to be at the forefront of the change.”