Zego, a leading insurtech, has taken significant steps towards achieving profitability by 2025.
- The company has reduced its workforce by over 100 positions, exiting the B2B market entirely.
- Zego is now concentrating on its B2C ventures, aiming for monthly profitability from early 2025.
- These strategic shifts have resulted in nearly halving the company’s annual losses.
- Despite challenges, Zego maintains its commitment to sustainable growth and innovation.
Zego, a London-based insurtech company insuring UK’s food delivery riders, has implemented a strategic restructuring to focus on sustainable growth and profitability by 2025. The company has taken the difficult decision to cut more than 100 jobs and exit the B2B market entirely.
This shift in strategy signifies Zego’s intent to prioritise the B2C segment, which the company believes offers a better opportunity to reach profitability at a quicker pace. The decision led to redundancies, primarily affecting the B2B aspect of the business during the third quarter of 2023.
As part of its strategic realignment, Zego’s workforce was reduced to 347, down from 452 in 2022, as the company focused on reducing operational costs. This restructuring played a crucial role in almost halving its pre-tax losses, which fell by 44% to £36.2 million in 2023, while turnover increased by 1.1% to £19.5 million.
The company, which became the UK’s first insurtech unicorn in 2021 with a valuation of $1.1 billion, remains focused on leveraging advanced technology and multiple data sources to provide innovative insurance solutions. Zego was founded in 2016 by Harry Franks and Sten Saar and has been instrumental in offering insurance products to self-employed drivers and vehicle fleets.
Zego’s strategic realignment reflects its commitment to achieving sustainable growth and profitability by focusing on B2C operations.
