SquareTrade
{{Short description|U.S. consumer products extended warranty provider owned by Allstate}}
{{Infobox company
| name = SquareTrade Inc.
| type = Subsidiary
| logo = Square_Trade_logo.svg
| logo_size = 250px
| area_served = Worldwide
| location = Brisbane, California
| foundation = {{start date and age|1999}}
| founder = {{ubl|Ahmed Khaishgi|Steven Abernethy}}
| key_people = Karl Wiley (Global president & CEO){{cite web |title=Leadership {{!}} Allstate Protection Plans |url=https://www.squaretrade.com/leadership/ |website=www.squaretrade.com |access-date=September 13, 2024 |language=en}}
| products = Consumer Electronics and Appliances Warranty
| revenue = US$1.32 billion
| parent = Allstate
| homepage = {{URL|https://squaretrade.com}} (US)
{{URL|https://squaretrade.co.uk}} (UK)
{{URL|https://squaretrade.fi}} (Finland)
}}
SquareTrade Inc. is an American-based extended warranty service provider for consumer electronics and appliances{{cite news|url=http://www.ebony.com/career-finance/is-it-worth-it-to-insure-your-iwhatever-999#axzz32wkdhHdV|title=Is It Worth It to Insure Your iWhatever?|last=Ramsey|first=Donovan X.|date=May 22, 2014|work=Ebony|accessdate=27 May 2014}} headquartered in Brisbane, California.
Dispute resolution services
Founded by Ahmed Khaishgi in 1999, SquareTrade launched as the first online service for resolving e-commerce disputes. SquareTrade worked with online marketplaces, such as eBay, utilizing an online negotiation tool to automate the dispute resolution process between sellers and buyers. Between 1999 and 2001, SquareTrade raised $15 million in funding from JP Morgan Partners, Weston Presidio Capital, and Draper Richards. That same year, the company launched a merchant-verification service, the SquareTrade Seal.{{cite book|last=Collier|first=Marsha|title=Starting an eBay Business For Dummies|url=https://books.google.com/books?id=tI-RLqG5-zkC&pg=PA106|accessdate=27 May 2014|date=2007-08-27|publisher=John Wiley & Sons|isbn=9780470230312|pages=106–}}{{cite book|last=McGrath|first=Lissa|title=20 Questions to Ask Before Selling on EBay|url=https://books.google.com/books?id=xsJHBkY5NBMC&pg=PA56|accessdate=27 May 2014|date=2006-01-01|publisher=Career Press|isbn=9781564148544|pages=56–}} Both original services have since been discontinued.{{cite book|last=Cortés|first=Pablo|title=Online Dispute Resolution for Consumers in the European Union|url=https://books.google.com/books?id=kdWsAgAAQBAJ&pg=PA149|accessdate=27 May 2014|date=2010-09-13|publisher=Routledge|isbn=9781136943508|pages=149–}}
Warranty services
In 2006, SquareTrade began offering consumer protection plans for portable devices, appliances, and other electronics, both online and through large retailers. That same year, PC Magazine ranked it number 93 on its list of the "Best 100 Web Sites of the Year."{{cite web|url=https://www.pcmag.com/slideshow_viewer/0,3253,l=253515&a=253510&po=93,00.asp |title=The Top 100 Web Sites of 2010 |publisher=PC Magazine |date=2010-08-16 |accessdate=2013-04-03}} In 2012, Bain Capital and Bain Capital Ventures announced a $238 million investment in SquareTrade, which was the second-largest venture capital deal of the year.{{cite web|url=https://venturebeat.com/2012/12/28/top-venture-capital-deals-2012/ |title=Top 15 venture capital deals of 2012 |publisher=Venture Beat |date=2012-12-28 |accessdate=2013-04-03}}
The company's underwriter has been AmTrust Financial Services, Inc., but as of 2013, SquareTrade was shifting toward Starr Indemnity.{{cite news|url=http://www.warrantyweek.com/archive/ww20131017.html|title=Appliance Service Contract Underwriters, 17 October 2013|date=17 October 2013|work=Warranty Week|accessdate=27 May 2014}}
SquareTrade was acquired by Allstate in late 2016, for $1.4 billion,{{Cite news|url=http://www.chicagobusiness.com/article/20170104/NEWS01/170109952/allstate-just-shelled-out-1-4-billion-for-a-money-losing-company|title=Allstate just shelled out $1.4 billion for a money-losing company|work=Crain's Chicago Business|access-date=2017-08-11}} joining Allstate's suite of consumer asset protection services.
Lawsuit
In late 2016, a class-action lawsuit was filed against SquareTrade, accusing the company of selling protection plans for products that were not eligible for coverage, which customers only discovered when filing a claim.{{Cite news|url=http://legalnewsline.com/stories/511064808-squaretrade-hit-with-class-action|title=SquareTrade hit with class action|last=Reformado|first=Wadi|access-date=2017-08-26|language=en}}
References
{{Reflist}}
External links
- {{Official website}}
{{Allstate|state=expanded}}
Category:American companies established in 1999
Category:Financial services companies established in 1999
Category:Companies based in San Francisco
Category:2016 mergers and acquisitions
Category:1999 establishments in California
Category:Financial services companies based in California