Zego, an insurtech for delivery riders, is pivoting its strategy.
- The company has cut over 100 jobs as part of strategic shifts.
- Zego aims for profitability by focusing solely on the B2C market.
- Annual financial losses have been reduced significantly by Zego.
- Zego became a unicorn in 2021 with a $1.1bn valuation.
Zego, a prominent player in insurtech, has made significant strategic adjustments to its business model. As it seeks to improve profitability, the company has decided to exit the B2B market entirely. This shift in strategy has resulted in the reduction of its workforce by 105 positions. The firm’s recent financial reports indicate an ambitious plan to reach monthly profitability by 2025.
Historically known for its support to delivery riders associated with major platforms like Deliveroo, Uber Eats, and Just Eat, Zego has redirected its focus towards the B2C segment. This pivot is intended to harness greater opportunities which the company believes will accelerate its path to profitability. The firm’s decision is underscored by its half-year financial metrics, showcasing a significant reduction in pre-tax losses by almost 44%, bringing it down to £36.2 million.
The company has outlined its strategic realignment as an essential move towards long-term success. According to Zego, aligning with the B2C market provides a more sustainable growth trajectory. The company expressed confidence in its ability to drive sustainable growth and profitability moving forward.
The company’s recent history includes a rise in turnover by 1.1% to £19.5 million in 2023. This increase, albeit modest, highlights the company’s resilience during this transitional phase. Founded in 2016 by Harry Franks and Sten Saar, Zego has always been at the forefront of innovation in commercial motor insurance, aiming to offer cost-saving solutions through technology and data integration.
Zego’s ascent to unicorn status in 2021, following a $150 million funding round, marks a significant milestone in its development. This achievement, however, comes with the responsibility to adapt and thrive in fluctuating market conditions. Supported by notable investors such as Transferwise founder Taavet Hinrikus and global investment entities, Zego’s strategic evolution demonstrates its commitment to navigating market complexities.
Zego’s strategic realignment towards the B2C market underscores a calculated effort to achieve sustained growth and profitability.
