The deal comes after a recent funding round gave Zego a boost in its ambition to provide usage-based insurance to fleets in the new mobility space
Insurtech firm Zego has entered the scooter insurance market in both Belgium and France via a partnership with Amsterdam-based micro-mobility start-up Dott.
The deal comes after Zego raised $42m in Series B investment last month to fund its planned European expansion and capitalise on the growing popularity of new mobility services such as e-scooters.
Dott received €30m ($34m) in new funding today to add to an initial €20m ($22.6m) seed figure requested to expand its shared e-scooter venture across Europe, and believes the deal with Zego marks an important step in its aim to provide safety to riders while absorbing the costs of cover for them.
Maxim Romain, CEO and co-founder of Dott, said: “Zego’s offer is exactly what we were looking for and we are particularly proud to be the first scooter-sharing company to integrate this type of insurance coverage, without increasing costs for our customers.
“Our goal is to make this sector more professional, more responsible and therefore more sustainable.”
Zego pivots from gig economy to scooter fleet insurance
After three years providing insurance products to individuals in the gig economy, Zego pivoted its business towards insuring fleets in April this year – starting with a partnership with commercial vehicle leasing firm WeFlex.
The newest agreement with Dott marks Zego’s initial effort to move into insuring fleets in the new mobility market, an ambition CEO Sten Saar previously said the firm wanted to pursue because of the growing urbanisation of Europe and increased usage of shared vehicles.
Mr Saar said: “We believe that companies such as Dott represent the future of mobility and we want to enable the growth of this exciting new industry by creating insurance models which suit its needs and can unlock its potential.
“For this form of transport to be widely adopted and welcomed by all, it’s essential that e-scooters come with the right insurance without causing inconvenience for riders.”
The new mobility market opportunity
The global market for new mobility services is currently worth more than $60bn, and management consultancy McKinsey expects it to continue to grow by an estimated 20% each year until 2030.
In an insight article posted on McKinsey’s website by its Centre for Future Mobility, it stated: “We expect it [the new mobility market] to become one of the most disruptive forces within the automotive ecosystem through to 2030.
“We anticipate potential for new, more profitable opportunities for automakers, suppliers, technology companies, and mobility companies.”
Zego has been eyeing the market for some time, expecting to bring usage-based insurance products to companies owning fleets of e-bikes and e-scooters, as well as more traditional players.
After the WeFlex deal was reported, Mr Saar told NS Insurance: “We’re talking to dozens of companies about how the concept of flexible insurance in line with usage could be applied.
“You could take the same concept used in our deal with Weflex and apply it to scooter sharing, car sharing or Royal Mail commercial fleets – there’s a wide spectrum where a lot of what we’re doing is really applicable.
“The business models are very varied too, we’re working on some very exciting things.”