- Metromile is an innovative pay-for-usage full-stack car insurance company. Premiums are correlated to how much a person drives.
- The decade old promise of telematics and data revolutionizing the car insurance industry has stalled. Metromile could be the company that helps bring the industry into the 21st century.
- Metromile was part of the 'SPAC-craze', including backing by prominent entrepreneurs Chamath Palihapitiya, Mark Cuban and Uber's Ryan Graves.
- Fundamentally, this is a good company with differentiated products, including a overlooked SaaS offering. Its ability to create a proprietary underwriting model (i.e., better actuary) could be very disruptive.
- Metromile stock has sold off ~50% from highs. If not acquired, returns should compound, as it expands into more states and establishes its brand as new alternative to large incumbent players, such as State Farm/GEICO and smaller players in a fragmented industry.
For further details see:
Metromile: GEICO 2.0 With SaaS Option Value