Root, Inc.

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Root Company
TypePublic
Nasdaq: ROOT
IndustryInsurance
FoundedMarch 2015 (2015-03)
FoundersAlex Timm
Dan Manges
Headquarters
Columbus, Ohio
,
United States
Area served
32 States (Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Mississippi, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, and Wisconsin West Virginia)
Key people
Alex Timm (CEO)
Matt Bonakdarpour (Chief Data Science & Analytics Officer)
Dan Rosenthal (Chief Revenue and Operating Officer)
ProductsCar insurance, Renters insurance, Homeowners insurance
RevenueIncrease $303.1 Million(2021)[1]
Decrease -$544.5 Million (2021)
Number of employees
1,007 [2] (2021)
Websitewww.joinroot.com
Footnotes / references
[3]

Root Inc currently provides car insurance to drivers in 32 U.S. states, homeowners insurance in 19 states, and renters insurance in 7 states.

About[]

Root requires drivers to download their mobile app, and perform test driving for a couple of weeks. If the driver passes the driving test, they are offered a premium based on the driving score calculated during the test drive which differentiates the company from traditional car insurance.[4] Root advocates to drop the credit score when determining how much car insurers decide to charge a customer as a way to break barriers for customers and larger social issues.[5]

History[]

Root, Inc was founded in March 2015 by Alex Timm and Dan Manges. In 2021, Dan Manges co-founder retired from CTO and now is an advisor for Root Inc.[6]

In 2017, Root began offering a discount to Tesla owners who drive using Autosteer mode, making Root the first insurance company to adjust premiums based on the deciding fact of whether the vehicle being insured is operating under semi-autonomous vehicle conditions.[7]

In 2018, Root became the first insurance tech startup outside the health-care sector to achieve unicorn status.[8] On September 9, 2019, Root announced their Series E funding round of $350 million on a $3.6 billion valuation. The round was led by DST Global and Coatue Management.[9] On October 27, 2020, Root had its initial public offering (IPO) where shares sold at $27 each, raising $724.4 million the largest IPO in Ohio history.[10][11]

On August 11, 2021, Root announced a partnership deal with Carvana to develop personalized auto insurance programs for Carvana’s online car-buying platform. The deal includes a $126 million investment from Carvana with a 5% stake in Root.[12]

Sponsorship[]

On December 14, 2020, 23XI Racing announced that Root will be one of the sponsors of the No. 23 Toyota Camry driven by Bubba Wallace in the NASCAR Cup Series in 2021.[13] Root had collaborated with Wallace for an advertisement during the 2020 season that highlights his involvement in racial equality movements.[14]

References[]

  1. ^ FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, ROOT, INC (Report). SEC. October 2020. Retrieved 2020-10-31.
  2. ^ FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, ROOT, INC (Report). SEC. October 2020. Retrieved 2020-10-31.
  3. ^ "Root Insurance Press, Bios & Media | Resources for Journalists". Root Insurance. Retrieved 2019-08-11.
  4. ^ Williams, Mark. "Insurer Root posts second big loss as public company even as it adds more drivers, renters". The Columbus Dispatch. Retrieved 2021-12-16.
  5. ^ Jones, Charisse. "'It has nothing to do with who I am': Lower credit scores can make car insurance much pricier for Black, Latino and Indigenous Americans". USA TODAY. Retrieved 2021-12-16.
  6. ^ "Two C-suite execs announce resignations from Root Insurance". www.bizjournals.com. Retrieved 2021-12-16.{{cite web}}: CS1 maint: url-status (link)
  7. ^ Muoio, Danielle (2017-03-15). "Tesla owners are already getting insurance discounts for using Autopilot". Business Insider. Retrieved 2019-07-04.
  8. ^ Chernova, Yuliya (2018-08-22). "Auto-Focused Root Insurance Reaches $1 Billion Valuation". Wall Street Journal. ISSN 0099-9660. Retrieved 2021-12-16.
  9. ^ "Root Insurance valuation hits $3.65 billion in latest round led by DST Global and Coatue". TechCrunch. Retrieved 2021-12-16.
  10. ^ Oguh, Chibuike (2020-10-28). "Car insurance startup Root raises $724.4 million in IPO". Reuters. Retrieved 2020-12-08.
  11. ^ Luthi, Ben. "Root Insurance IPO Raises Almost Three-Quarters of a Billion Dollars". Investopedia. Retrieved 2020-12-08.
  12. ^ Williams, Mark. "Carvana to invest $126 million in Root with new partnership". The Columbus Dispatch. Retrieved 2021-12-16.
  13. ^ "23XI Racing announces sponsors". Jayski's Silly Season Site. NASCAR Digital Media, LLC. December 14, 2020. Retrieved December 14, 2020.
  14. ^ "Bubba Wallace Offers No Apologies In Powerful New Ad". BET. October 27, 2020. Retrieved December 16, 2020.

External links[]

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