Pay-as-you-go insurance platform for gig economy delivery drivers raises £1.225M
Zego, who offer scooter drivers insurance from as little as 65p an hour, will use the funding to expand its tech team and tech development
Zego, a pay-as-you-go insurance platform for gig economy delivery drivers, has raised £1.225m in seed funding.
Backed by LocalGlobe, Zego aims to help businesses that operate in the gig economy attract more couriers by proving them with flexible and cheap insurance for their bikes, mopeds and eventually cars.
Targeting food delivery drivers who work from their own homes on a flexible basis, Zego is currently used by scouter drivers for the likes of Deliveroo, UberEats, Amazon, Jinn, and Quiqup.
Fees for the scooter policy start from just 65p an hour up to £25 a week, while insuring a car can cost just £1 an hour.
Operating via an app, drivers top up their account much like an Oyster card or pay-as-you-go mobile – with the account then debited after a shift is completed.
Co-founded by Harry Franks, Stuart Kelly, and Sten Saar, the trio have a wealth of experience in the start-up scene – particularly the gig economy.
Both Franks and Saar previously worked for food delivery giant and Startups 100-ranked Deliveroo and Young Gun-founded onefinestay, while Kelly worked as head of engineering at Startups 100-listed Hubble.
Becoming increasingly synonymous with workers' rights disputes, the gig economy has seen the lines between self-employment and employment become more blurred in recent years.
The Taylor Review, a recent government-backed employment report, has suggested that gig economy workers be renamed “dependent contractors” in a bid to better distinguish them from people who are genuinely self-employed.
The report suggested that a “one sided flexibility” exists in the relationship between businesses that operate within the gig economy and their delivery drivers, that gives too much power to the employer and not enough rights to the employee.
In October 2016, the Employment Tribunal ruled that Uber drivers were not self-employed and were in fact entitled to an array of basic employment rights including the right to be paid the national living wage, the right to join a company pension scheme, and the right to statutory holiday pay and rest breaks.
The insurtech start-up will use this latest injection of cash to expand its tech team and tech development.
“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.”
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.”