London-based insurtech unicorn Zego has partnered with Dija, a new 10-minute grocery delivery startup in the city. As a result of the partnership, Zego will insure the latter’s growing fleet of its e-bikes. This is the first commercial e-bike policy from the company following its recent launch of two new products in the flexible insurance category designed to cover e-bike and moped fleets in the UK.
Zego was founded in 2016 by Harry Franks, Stuart Kelly and Sten Saar is a commercial motor insurance company. It offers a range of policies from flexible pay-as-you-go insurance to annual cover and has insured over 200,000 vehicles in five countries. The company recently became the first insurtech unicorn in the UK raising $150 million (nearly £108 million) in Series C funding. The company announced that it will use the investment to help expand in new and existing territories and double down on its fleet offering.
Dija was established in January 2021 by former Deliveroo executives, Alberto Menlolascina and Yusuf Saban. It bagged $20 million (nearly £14.5 million) funding since its debut. It is an ultra-fast grocery delivery startup that assures customers to deliver groceries in just 10 minutes no missing items and no substitutes.
Ines Feraci, Director of B2B from Zego, said: “We are excited to be teaming up with Dija, a startup with huge potential, to launch our first ever commercial e-bike policy. Businesses in this sector are completely reliant on their vehicles and we want to give them flexible insurance products which help to maximise their fleets’ potential while minimising costs.”
Alberto Menolascina, Founder & CEO at Dija, said: “Our partnership with Zego will enable us to assume greater control over our cash flow, which in turn will enable us to prioritise our funds on things like international expansion and hiring. For a fast growing startup like ourselves, this is exactly the kind of flexibility that we need.”
How does this insurance policy work?
Zego’s third-party and accident policy will provide Dija’s e-bike fleet with fixed-term annual cover. It will charge on a monthly basis, so that the company does not have to pay a hefty upfront fee to cover its fleet. This way, Dija will be able to have greater control over its cash flow and enable the business to use its funds on geographic expansion and expansion of its team of delivery workers.
Furthermore, Dija will also be able to add and remove e-bikes from its policy with ease from Zego’s fleet portal. Also, the delivery startup will be able to track how many of their e-bikes are insured at any given time and which e-bikes in particular. This way, there will be enhanced transparency and more flexibility than with traditional insurance. Also, the company can actively manage its own fleet on a daily basis.
While traditional policies will take longer to go live, Zego’s new flexible e-bike and moped fleet products can go live in just one week. These policies enable businesses to save valuable time in getting their vehicles on the road. Also, businesses can quickly scale their fleets in size and expand them to include other vehicles too.