Zego (previously known as Tego), a London, UK-based provider of pay-as-you-go insurance for drivers and riders who work flexibly with their own vehicles, raised £1.225m in seed funding.
The round was led by LocalGlobe.
The company intends to use the funds to contnue to develop its tech platform and increase its technical team.
Led by Harry Franks, co-founder and CEO, Sten Saar, co-founder and chief operating officer, and Stuart Kelly, co-founder and chief technology officer, Zego provides pay-as-you-go insurance for drivers and riders working for sharing economy companies – including Deliveroo, UberEATS, Jinn and Amazon, who only pay – via an app or top up card – for cover for the hours they work.
The insurance product is fully underwritten by Aviva. Fees for the scooter policy start from 65p an hour up to £25 a week, while insuring a car can cost as little as £1 an hour.
To date, Zego has written 400,000 hours of cover for drivers.
The product for small engine scooters is already available across the UK, although the biggest demand is in London and other big cities.