EP 29 - Unicorn Files - Zego

Zego: British insurtech unicorn. From pay-per-use for Deliveroo riders to smartphone telematics for mobility professionals, all the way to near break-even in 2024. The story of how an insurance built for the gig worker economy became a scalable business.

Founded in London in 2016 by Sten Saar, Harry Franks, and Stuart Kelly, Zego was born from the observation that traditional insurance models do not work for platform workers: a courier does not use their scooter 40 hours a week like a full-time employee, yet pays the same annual policy. Pay-per-use insurance — active only when you are online on the app — lowers the cost for the worker and creates a more accurate product in risk pricing.

In this episode, we analyze how Zego has extended the model from delivery to the entire category of mobility professionals (taxis, vans, corporate fleets), the transition from pay-per-use policies to annual products with integrated telematics (behavioral scoring via smartphone to offer personalized premiums), and the strategy that has brought Zego close to profitability — a rare milestone for European insurtechs. We discuss the $1.1 billion valuation from 2021, the challenges of the insurance market in a rising interest rate environment, and the role of FCA regulation in shaping the product.