Zego to stop offering its B2B product

Based on a recent filing, London-based commercial car insurance startup Zego has decided to stop offering its fleet insurance product as part of an effort to focus on “sustainable growth.”

In the filing, the company stated that despite achieving top-line growth, this segment was not meeting performance expectations. Zego also added that the business “did not benefit” from its telematics proposition. The startup will focus on private car insurance instead.

In 2023, Zego reported £122 million in written premiums, an 11% decrease compared to 2022. Loss before taxes stood at £36 million, a significant improvement compared to the £65 million loss in 2022. Zego’s cash balance was £28 million at the end of 2023.

Founded in 2016, Zego reached a $1.1 billion valuation in 2021 and it raised ~$280 million to date. Its last publicly-disclosed funding round was announced in late 2021.

It was reported that Zego recently made workforce cuts that impacted more than 100 employees. The startup had 348 employees at the end of 2023.

A Zego spokesperson stated that the fleet insurance coverage has not been offered for a year.

This post was updated after an earlier version referred to the fleet insurance product as commercial auto insurance.