Intuit to acquire technology from Zendrive

Financial software company Intuit has signed an agreement to acquire certain technology and assets from mobility risk intelligence provider Zendrive. Certain Zendrive employees, including CEO Dennis Ellis and Co-founder and CTO Pankaj Risbood, will join Credit Karma to accelerate innovation and adoption of its usage-based auto insurance product, Karma Drive.

The product, which was introduced in late 2020 in partnership with Zendrive, allows Credit Karma users to potentially obtain an auto insurance discount based on their actual driving, with no requirements to purchase a new policy before seeing how much money they can save. To date, Karma Drive has enrolled more than 6 million members in the program and yielded over 4 million discounted policy offers. As of March 2023, Credit Karma had more than 120 million members in the US.

“Insurance costs have increased dramatically and Americans are looking for ways to minimize driving expenses in this high-inflation environment. Karma Drive gives our members access to personalized discount offers based on safe driving habits, without first having to purchase a policy. With Zendrive’s technology and expertise, we strive to make usage-based auto insurance more accessible than ever and bring more transparency, fairness, and accuracy to consumer auto insurance pricing, while providing insight into their driving behaviors.” – Joe Kauffman, president, Credit Karma.

“Zendrive’s mission is to make roads safer with data and analytics, and we pride ourselves on delivering experiences that help create awareness for safe driving habits. Intuit’s customer-obsessed culture is a perfect match for our team. Together we will democratize access to fair insurance for all Americans based on their driving habits, not their financial situation.” – Dennis Ellis, CEO of Zendrive.

Intuit expects to close the transaction in Q4 FY24. Terms of the deal weren’t disclosed.