By Aisling Finn on Tuesday 30 March 2021
The insurtech will offer two new flexible policies aimed at both moped and bike-based food and grocery delivery companies.
Zego, which provides commercial motor insurance for self-employed drivers and riders to businesses with entire fleets of vehicles, has taken its first steps into the world of food delivery insurance.
The London-based fintech will now offer two flexible insurance products for moped and e-bike fleets in the UK as food and grocery delivery companies surge in popularity.
The first product will be tailored to electric and traditional mopeds and is usage-based so companies only pay for it when they need it.
Firms will pay a base rate to ensure vehicles are covered at all times and Zego’s GPS partner ABAX will calculate how much distance the fleet covers.
Zego’s second product is a fixed-term annual policy for e-bike fleets which will be priced per vehicle so companies will only pay for the vehicles in use.
Ines Feracci, commercial director at Zego, said: “The market for fleet moped and e-bike businesses is growing at a rapid pace, particularly due to the surge in delivery and courier services as a result of the Covid-19 pandemic.”
“Zego has already been able to serve this part of the market well, by partnering with a number of fleet businesses and work providers, and this product is an evolution of that work. We recognise the growing use of mopeds and e-bikes by delivery drivers and riders up and down the country, and are pleased that alongside our partners we are now able to provide a far more affordable and fairer insurance model for these businesses.”
Through Zego’s two new flexible products, food and grocery delivery companies will be able to manage cash flow better as there are no hidden costs.
The two new policies come just three weeks after Zego was named the UK’s first insurtech unicorn following a $150m raise.
Since launching in 2016, Zego has raised over $200m and has plans to expand into new markets as the insurtech space heats up.
The fintech offers affordable pay-as-you-go plans and annual policies on more than 200,000 vehicles across five countries, having dished out 17m insurance policies to date.