Root, Inc. (ROOT): All You Need to Know About this insurance company
Root incorporated is an American insurance company. The company was founded in the year 2015 by founders Alex Timm and Dan Manges. The company currently provides insurance service to drivers across 30 states in the United States. The unique feature of the company is its easy process to apply for insurance. The company app can be downloaded by any driver and they can apply for insurance registration. There is a special driver test which is monitored using the app. The app studies different parameters of the driver, which includes their social behavior and driving history, before approving them for insurance. Their premium is offered on the basis of their test results comprising of the parameters discussed before.
A major focus of Root Incorporated is to ensure they only approve high-quality drivers for insurance premiums, thereby ensuring better feasibility of their model. This helps them keep their premium rates more competitive compared to other competitors in the market.
A unique feature which differentiates Root Incorporated from other insurance is their focus on AI-based driving. The company offers a discount to drivers who use a Tesla with the special Auto Steering option enabled. This places Root Incorporated in a different league than other insurance firms. The discount premiums are a great way to attract more drivers with Auto steer technology, which results in better returns overall by avoiding the standards of human error.
The company CEO is Alex Timm and Dan Manges is the Chief Technology Officer. Their Chief Financial Officer is Dan Rosenthal. The company generates revenue worth $292.4 Million as of 2020. They currently employ around 901 employees.
The company currently trades in the NASDAQ index. In the year 2018, the company achieved the Unicorn status for a tech insurance startup. In 2019, with their last funding, which was led by equity firms such as Coatue Management and DST Global, the company reached a $3.6 Billion in total market valuation. As of 2019, their operating cost was around $260 Million, whereas total revenues were around $290 Million.
The company’s future prospects look promising, considering their technology driven operation model. A major concern will always revolve around the profitability of the company, something which should be kept a closed eye upon. At present, the company looks set to expand its businesses overseas depending upon their success in the US market.