A firm insuring the UK’s food delivery riders has axed more than 100 jobs and has exited the B2B market altogether as it set a course to hit profitability in 2025.
London-based Zego, which supports Deliveroo, Uber Eats and Just Eat riders, has cut its headcount by 105 since 2022 to 347, its recent accounts show, as it nearly halved its annual losses.
“In 2023, we undertook a strategic realignment to better position ourselves for long-term success. This involved shifting our primary focus towards the B2C segment, which offers greater opportunity to reach profitability faster,” the company said.
“This has led to redundancies primarily within the B2B segment of the business during Q3 2023. With these changes, we are confident in our positioning to drive sustainable growth in 2024 and beyond.”
The firm added that it was targeting monthly profitability from the beginning of 2025.
The insuretech posted a 1.1% rise in turnover to £19.5m in 2023, will pre-tax losses fell by 44% to £36.2m, thanks in large part to a reduction in staff costs.
The company became the UK’s first-ever insuretech unicorn in 2021 after raising $150m at a valuation of $1.1bn. Transferwise founder Taavet Hinrikus, Target Global, DST Global, Balderton Capital and Latitude were among participants in the series C round.
Founded in 2016 by Harry Franks and Sten Saar, Zego is a commercial motor insurance company that powers businesses’ opportunities, from self-employed drivers and riders to entire vehicles’ fleets. The insurtech company combines advanced technology with multiple data sources to offer insurance products and lets businesses save their time and money.