Metromile
{{Short description|Technology start-up based in San Francisco}}
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{{Advert|date=November 2020}}
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{{Infobox company
| name = Metromile, Inc.
| logo = File:Metromile-logo.png
| logo_size =
| logo_padding =
| logo_alt =
| logo_caption =
| image = File:Sf building lit up 2.JPG
| image_size = 200px
| image_alt =
| image_caption = Metromile building at night, San Francisco
| native_name =
| native_name_lang =
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| type = Subsidiary
| parent = Lemonade, Inc.
| traded_as = {{NASDAQ was|MILE}}
| industry = Technology
| founded = {{start date and age|2011}}, in Redwood City, California
| hq_location = 425 Market Street
| hq_location_city = San Francisco, California
| hq_location_country = U.S.
| key_people = Dan Preston (CEO)
| products = Pay-per-mile insurance, driving app
| brands =
| services =
| revenue = {{increase}} {{US$|104.9 million|link=yes}} (2021){{cite web|title=Metromile, Inc. 2021 Annual Report (Form 10-K) |url=https://www.sec.gov/ix?doc=/Archives/edgar/data/1819035/000162828022004241/mile-20211231.htm |date=28 February 2022 |publisher=U.S. Securities and Exchange Commission}}
| operating_income = {{decrease}} {{US$|-197.7 million}} (2021)
| net_income = {{nowrap|{{decrease}} {{US$|-216.4 million}} (2021)}}
| assets = {{increase}} {{US$|313.4 million}} (2021)
| equity = {{increase}} {{US$|186.4 million}} (2021)
| owner =
| website = {{URL|metromile.com}}
| founders = {{Unbulleted list
}}
| areas_served = California, Illinois, New Jersey, Pennsylvania, Virginia, Washington, Arizona, Oregon
}}
Metromile, Inc. is a technology start-up based in San Francisco that provides pay-per-mile car insurance. The company also licenses its digital insurance platform to insurance companies worldwide and offers a digitally native product that includes smart driving features, automated claims, and vehicle information. In July 2022, Metromile was acquired by Lemonade, Inc.
Pay-per-mile insurance
Pay-per-mile insurance is a type of usage-based auto insurance where policyholders pay a base rate plus a per-mile fee. It is designed for low-mileage drivers and calculates costs based solely on distance driven, without considering driving behavior. This model contrasts with other usage-based insurance programs that assess factors such as speed, braking, or time of travel.{{cite web|last1=Constine|first1=Josh|title=Metromile Launches Per-Mile Car Insurance That Could Save Californians 40%|url=https://techcrunch.com/2014/07/16/per-mile-car-insurance/|website=TechCrunch|date=July 16, 2014}} To measure mileage, the Metromile Pulse device is plugged into the onboard diagnostic (OBD-II) port of the car. The OBD-II port is the same port that mechanics use to diagnose issues that trigger a car’s “check engine” light. The device then transmits mileage data to servers.{{cite web|title=Metromile Launches Pay-Per-Mile Car Insurance and Updated Connected Driving Platform in California|url=http://www.marketwatch.com/story/metromile-launches-pay-per-mile-car-insurance-and-updated-connected-driving-platform-in-california-2014-07-16|website=MarketWatch|date=July 16, 2014}} Metromile provides a full customer service team and 24/7 claims team.{{cite web|title=Metromile Customer Service|url=https://www.metromile.com/service/}} Metromile began underwriting its own policies in September 2016.{{Cite web|url=https://techcrunch.com/2016/09/21/pay-per-mile-insurance-startup-metromile-raises-191-5m-acquires-mosaic-insurance/|title=Pay-per-mile insurance startup Metromile raises $191.5M, acquires Mosaic Insurance|last=Lunden|first=Ingrid|website=TechCrunch|date=21 September 2016 |access-date=2017-02-17}}
Per-mile insurance through Metromile is currently available in Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia, and Washington.{{cite web|last1=Truong|first1=Alice|title=A New Take on Auto Insurance: Pay by the Mile|url=http://www.fastcompany.com/3033107/fast-feed/a-new-take-on-auto-insurance-pay-by-the-mile|website=Fast Company}}{{cite web|last1=Vaughan|first1=Steve|title=Pay by the mile car insurance?|url=http://www.vagazette.com/news/va-vg-biz-column-0624-20150622,0,2276220.story|website=The Virginia Gazette|access-date=2015-06-24|archive-url=https://web.archive.org/web/20150711055820/http://www.vagazette.com/news/va-vg-biz-column-0624-20150622,0,2276220.story|archive-date=2015-07-11|url-status=dead}}{{cite web|last1=Weissman|first1=David|title=Pay-per-mile car insurance coming to disrupt traditional model in Pennsylvania|url=http://www.yorkdispatch.com/breaking/ci_28715643/pay-per-mile-car-insurance-coming-disrupt-traditional|website=York Dispatch|url-status=dead|archiveurl=https://web.archive.org/web/20150903004003/http://www.yorkdispatch.com/breaking/ci_28715643/pay-per-mile-car-insurance-coming-disrupt-traditional|archivedate=2015-09-03}}{{cite web|title=Metromile Launches New Form of Car Insurance in New Jersey|url=http://www.fotcp.com/fot/metromile-launches-new-form-of-car-insurance-in-new-jersey/|website=Future of Transport}} Drivers in other states can add themselves to a waitlist to be notified as additional states become available. Metromile is only offering personal car insurance policies at this time.
Driving app
The Pulse device provided to per-mile insurance customers also collects data about trips and car health. Metromile visualizes this information in an app to give drivers insights that can simplify car ownership. Features include street sweeping alerts, where the driver is notified if their car is parked in a street sweeping zone,{{cite web|last1=Balise|first1=Julia|title=MetroMile app aims to help drivers avoid street-sweeping violations|url=http://blog.sfgate.com/techchron/2014/03/19/metromile-app-will-help-drivers-avoid-street-sweeping-violations/|website=SFGate|date=March 19, 2014}} and a car health monitor.{{cite web|last1=Buhayar|first1=Noah|title=Metromile Pitches Pay-as-You-Drive Auto Insurance|url=https://www.bloomberg.com/bw/articles/2014-08-21/metromile-pitches-pay-as-you-drive-auto-insurance|website=Bloomberg|date=August 21, 2014}} The car locator feature shows where a car is parked, and some users have recovered their stolen vehicles by knowing their car’s location.{{cite web|last1=Vacar|first1=Tom|title=Car insurance app helps San Francisco police nab car thieves|url=http://wn.ktvu.com/story/28285387/car-insurance-app-helps-san-francisco-police-nab-car-thieves|website=Fox KTVU}} The app is currently available for both Apple iOS and Google Android phones.{{cite web|last1=Dennis|first1=Justin|title=Track Your Mileage, Fuel Costs And More With A Free OBD2 Device|url=http://www.makeuseof.com/tag/track-mileage-fuel-costs-free-obd2-device/|website=MakeUseOf|date=November 3, 2014}}
In June 2015, the Metromile Tag was introduced to give non-insurance customers a way to also use the driving app.{{Cite web|title = Metromile's Tag uses Apple iBeacon tech to track your driving|url = https://www.engadget.com/2015/06/03/metromile-tag-apple-ibeacon/|website = Engadget|accessdate = 2015-06-24}} The Tag wirelessly connects to smartphones via Apple iBeacon technology.
History
Metromile was founded in Redwood City, California, in 2011 by David Friedberg and Steve Pretre.{{cite web|last1=Nieva|first1=Richard|title=Really progressive insurance: MetroMile wants drivers to pay per mile|url=http://pando.com/2012/12/05/metromile-wants-to-reinvent-car-insurance/|website=PandoDaily}} David Friedberg currently sits as the chairman of the board, and the company is led by CEO Dan Preston. In 2013, the company moved its headquarters to San Francisco and in April 2015 added a second office space.{{cite web|title=S.F. Startup Revs Up Expansion|url=https://www.bisnow.com/archives/newsletter/san-francisco/3915-sf-startup-revs-up-expansion/|website=Bisnow Commercial Real Estate News}} A new location was opened in Boston in April 2015 and in Tempe in May 2015.{{cite web|last1=Castellanos|first1=Sara|title=San Francisco insurance company expands in Boston|url=http://www.bizjournals.com/sanfrancisco/blog/real-estate/2015/04/metromile-san-francisco-insurance-boston-preston.html|website=San Francisco Business Times|date=April 2, 2015}}{{Cite web|title = San Francisco insurance company, Metromile, to open office in Tempe, hire 130 - Phoenix Business Journal|url = http://www.bizjournals.com/phoenix/news/2015/05/28/san-francisco-insurance-company-to-open-office-in.html|accessdate = 2015-06-24}} In September 2016 they announced a new round of $192 million in funding and acquired a carrier which enabled them to start underwriting their own policies.{{Cite news|url=https://www.bloomberg.com/news/articles/2016-09-21/metromile-raises-192-million-to-take-on-car-insurance-business|title=Metromile Raises $192 Million to Take on Car Insurance Business|date=2016-09-21|newspaper=Bloomberg.com|access-date=2017-02-17}} The company became publicly-listed in February 2021 in a reverse merger deal,{{cite web |url= https://www.insurancejournal.com/news/national/2021/02/09/600613.htm |title=Metromile to Begin New Life as Public Company as Reverse Merger Closes |date=February 9, 2021 |publisher=Insurance Journal}} supported by Betsy Z. Cohen who also joined the company’s board of directors.{{Cite web|title=Betsy Cohen joins Metromile Board of Directors|url=https://theorg.com/org/metromile/wires/betsy-cohen-joins-metromi-ed208d7a|access-date=2021-08-18|website=THE ORG|language=en}}{{Cite web|title=The Bancorp Founder Betsy Cohen Joins Metromile, Inc. Board of Directors|url=https://finance.yahoo.com/news/bancorp-founder-betsy-cohen-joins-130000545.html|access-date=2021-08-18|website=finance.yahoo.com|date=10 February 2021 |language=en-US}}
On November 8, 2021, Lemonade, Inc. announced that it would acquire Metromile in an all-stock transaction, which implied a fully diluted equity value of approximately $500 million, or around $200 million net of cash.{{Cite web|title=Lemonade To Acquire Metromile|url=https://finance.yahoo.com/news/lemonade-acquire-metromile-211000043.html |website=Yahoo Finance}} The acquisition completed on 28 July 2022. Following the acquisition, Lemonade laid off 20% of Metromile's staff.{{cite web |url=https://techcrunch.com/2022/07/29/lemonade-closes-on-acquisition-of-insurtech-metromile-promptly-lays-off-about-20-of-its-staff/ |title=Lemonade closes on acquisition of insurtech Metromile, promptly lays off about 20% of its staff |date=29 July 2022 |work=TechCrunch |author=Mary Ann Azevedo}}{{Cite web |title=Lemonade Lays Off 20% of Workforce as it Completes $145 Million All-Stock Metromile Acquisition |url=https://news.ambest.com/newscontent.aspx?refnum=243395&altsrc=23 |access-date=2025-03-18 |website=news.ambest.com}}
See also
References
{{reflist|30em}}