In one of its newest initiatives, Ford Motor Co partnered with Metromile to equip its cars with cutting-edge devices that push down the costs for their buyers. Metromile is a machine-learning powered startup that specializes in the provision of pay-per-mile car insurance. Before this collaboration Metromile monitored given cars driven miles with specifically designed devices that got plugged in into the car’s diagnostics port. This business model generates over $100 million revenue per year. Now, most of the new Ford cars from 2020 and 2021 will have the technology embedded into its system.
In fact, this partnership was dictated by the market. Insurance companies faced major backlash by the surge of Covid-19. Quarantine made people drive less, hence, they started demanding from their insurers more refunds, credits and rate cuts than they had already received. These class action lawsuits, once again, proved consumers becoming more sensible and thorough. Therefore, the solution these two companies built is the appropriate response to the changing client profile.
SOURCE – https://www.cnbc.com/2020/09/03/ford-metromile-partner-for-pay-per-mile-insurance-on-new-cars.html
