Zego’s latest partnership will see it provide fleet cover for e-scooters in France and Belgium, as it looks to continue expansion ahead of the incumbents. The London-based insurance start-up provides on-demand cover for gig economy workers in the UK and Ireland and commercial cars in France.
Zego’s partnership with e-scooter sharing scheme Dott will see its policy integrated into the latter’s signup process, meaning all customers will automatically have comprehensive cover. Dott will cover the costs without passing them on to consumers.
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E-scooters are becoming increasingly popular, with over 100 renting schemes available in cities across the world, in a manner similar to bike hires. An estimated 15,000 scooters are already in circulation in Paris in 2019, with an additional 40,000 expected to arrive before the end of the year, highlighting the market’s considerable potential. Dott itself is live in Brussels, Paris, and Lyon and holds between 1,000 and 2,000 scooters in each city.
However, the largest barrier to entry for providers will be consumer hesitation towards insurance, particularly as it is not commonplace in the already established cycle hire schemes found in many cities. Therefore, while it is particularly positive for Zego that Dott covers the premiums in this partnership, other insurers looking to capitalise will have cause for concern.
A potential problem is the lack of clarity on a global scale regarding the legality of e-scooter use. They can only be used on private land in the UK and there is currently no restriction on what speed they can go, although this is set to be reviewed. They were banned on French pavements in May 2019, bringing into question where Dott customers would be covered to use them.
They are still allowed on French roads at a maximum speed of 20kph, but it remains to be seen whether this will reduce the appeal and convenience for riders. The Spanish, meanwhile, have taken a much stricter approach: in Barcelona, renting e-scooters at all is illegal. Insurers will need to monitor these developments closely as cover needs and consumer demand will differ in each country depending on whether the e-scooters are allowed on pavements, restricted to roads, or banned entirely.
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By GlobalDataThe increasing popularity of e-scooters undoubtedly creates a new opportunity for insurers in cities across the world. With its experience in offering cheap, digital, and flexible insurance in the gig economy, another emerging market, Zego should be an ideal insurance partner for Dott.
