Start-up Zego raises £1.2m; partners Aviva on new product
Zego, the provider of pay-as-you-go insurance for drivers and riders who work flexibly with their own vehicles, has raised £1.225 million in seed funding from investors led by LocalGlobe.
Zego, which previously was known as Tego, was launched last year to provide specialist pay-as-you-ride insurance to drivers working for sharing economy companies - including Deliveroo, UberEATS, Jinn and Amazon.
The fundraising comes as Zego launches its first product for car drivers, which is fully underwritten by Aviva.
The company said the funding round will help the rapidly growing company with its tech development and enable it to increase its technical team. The product for small engine scooters is already available across the UK, although the biggest demand is in London and other big cities.
“We want to empower people across Europe to work in the way that suits their life and commitments. We’re targeting part-time drivers with a product that is particularly tailored to help them get the most out of work. Buying insurance should be quick and easy, mobile, flexible and transparent. You should only have to pay when you earn and that way our insurance helps you to work and take control of your expenses,” said Harry Franks, co-founder and CEO of Zego.
Robin Klein, partner at LocalGlobe, said: “The world of work is changing fast and services like insurance have a long way to go to catch up. Zego is a simple idea but it has the potential to free millions of people around the world to work in a way that suits them. As Zego collects more data about delivery drivers it will also help the insurance industry price premiums more effectively, which ensures that sharing economy jobs really do pay for those who rely on them.”
All car, bike and scooter drivers are required by law to be insured for the periods that they are delivering, but the expense and difficulty of buying a policy can be a sticking point in signing up new drivers, as until now there have only been annual policies available.
Since August 2016, Zego has been selling a flexible pay-as-you-go product to scooter drivers and is about to launch a motor policy for food and courier delivery drivers who use their cars.
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