Metromile

Metromile was a United States insurtech company that developed a usage-based automobile insurance model centered on mileage rather than conventional annual premiums. Founded in 2011 by David Friedberg and Steve Pretre, the company began in Redwood City, California, and later moved its headquarters to San Francisco. Its proposition was aimed particularly at people who drove relatively few miles and therefore might be poorly served by traditional insurance pricing. Customers paid a recurring base amount plus a charge for each mile driven, with mileage measured by the Metromile Pulse device connected to a vehicle's OBD-II diagnostic port. The company combined insurance with a digitally oriented vehicle-management experience. Its mobile application displayed trip and vehicle information, helped customers locate a parked car, monitored aspects of vehicle health, and offered practical alerts such as street-sweeping notifications. These features were intended to make the insurance relationship more useful between claims and renewals. Metromile also operated a 24/7 claims service and automated parts of the claims process, presenting itself as a technology-led alternative to incumbent insurers rather than simply as a lower-cost policy provider. Metromile initially worked with insurance carriers, but in September 2016 it began underwriting policies itself after raising capital and acquiring a carrier. This change gave the company greater control over product design, pricing, claims handling, and the economics of its insurance book. In addition to its consumer insurance offering, Metromile licensed aspects of its digital insurance platform to insurers, extending the business beyond its own branded policies. The company expanded its presence during the middle of the 2010s, opening additional offices in Boston and Tempe while maintaining its San Francisco base. In June 2015 it introduced the Metromile Tag, a wireless device that allowed people who were not insurance customers to use elements of its driving application. The Tag connected with smartphones using Apple iBeacon technology, broadening the potential audience for Metromile's connected-car tools. Metromile's insurance product was reported as available in selected United States states, including Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia, and Washington. The product was designed for personal automobile insurance rather than commercial policies. Its pricing approach differed from behavior-based telematics programs: the core variable was distance driven, while the company also collected trip and vehicle information for app features. Metromile became publicly listed in February 2021 through a reverse-merger transaction. Its period as an independent public company was short. In November 2021, Lemonade, Inc. announced an agreement to acquire Metromile in an all-stock transaction. The deal was described as having an implied fully diluted equity value of approximately $500 million, or approximately $200 million net of cash, subject to the transaction terms and assumptions at announcement. The acquisition closed on July 28, 2022. Lemonade subsequently reduced Metromile's workforce by approximately 20 percent. After the acquisition, Metromile's independent corporate status changed, and the continuing availability or scope of the standalone Metromile brand is not clear from the supplied reference material.

Metromile emerged in 2011 as a Redwood City, California, startup founded by David Friedberg and Steve Pretre. Its central business idea was to adapt automobile insurance to customers whose driving patterns did not fit the traditional annual-premium model. Rather than charging a largely fixed price based on broad risk characteristics, the company proposed a base rate combined with a per-mile charge. The model was intended especially for low-mileage drivers and differed from behavior-based telematics programs, which commonly evaluate factors such as acceleration, braking, speed, or driving time. To measure mileage, Metromile developed the Pulse device. The device plugged into a vehicle's OBD-II port, the diagnostic connection used by automotive technicians, and transmitted mileage data to Metromile's systems. This hardware supported the company's insurance pricing model while also supplying information for its digital vehicle-management tools. The accompanying application provided trip and vehicle data, street-sweeping alerts, a parked-car locator, and vehicle-health information. Metromile also promoted customer support and continuous claims availability as parts of its digitally native insurance experience. Metromile moved its headquarters to San Francisco in 2013. During 2015 it expanded its physical footprint, adding office space in San Francisco, a Boston location in April, and a Tempe, Arizona, location in May. In June of that year, the company introduced the Metromile Tag. Unlike the Pulse device supplied to insurance customers, the Tag was designed to let people outside the insurance program use the driving application. It communicated wirelessly with smartphones through Apple's iBeacon technology, reflecting Metromile's effort to build a broader connected-car software proposition. The company initially relied on carrier relationships for insurance capacity. In September 2016, following a reported $192 million funding round, it acquired an insurance carrier and began underwriting its own policies. This represented a significant strategic shift: Metromile could exercise more direct control over policy administration, pricing, claims, and the underwriting economics of its book. Alongside its branded personal auto policies, it developed and licensed digital insurance technology for other insurers, making the business both an insurer and a software provider. The branded pay-per-mile product was offered in selected United States markets, including Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia, and Washington. Customers in other states could join a waiting list as the company considered further availability. The supplied reference describes the offering as personal automobile insurance and does not identify a commercial auto line. The product's main distinction was mileage-based pricing, although the connected hardware and application collected additional information used for customer-facing vehicle features. Metromile entered the public markets in February 2021 through a reverse merger. Its independent public-company period soon led to a change in ownership. In November 2021, Lemonade, Inc. announced that it would acquire Metromile in an all-stock transaction. The announcement characterized the proposed deal as implying approximately $500 million of fully diluted equity value, or approximately $200 million net of cash. The transaction closed on July 28, 2022. Lemonade later reduced Metromile's workforce by approximately one-fifth. The acquisition ended Metromile's operation as an independent corporate company, although the supplied sources do not establish the precise post-acquisition status of every product, technology asset, or consumer-facing brand element.

1. 2022Lemonade completes the acquisition

   Lemonade completed its acquisition of Metromile on July 28.

   Source
2. 2021Metromile becomes publicly listed

   Metromile became publicly listed in February through a reverse-merger transaction.

   Source
3. 2016Metromile starts underwriting its own policies

   After raising capital and acquiring a carrier, Metromile began underwriting its own policies in September.

   Source
4. 2015Metromile expands offices and launches the Tag

   The company added offices in Boston and Tempe and introduced the Metromile Tag for non-insurance users of its driving application.

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5. 2013Headquarters move to San Francisco

   Metromile moved its headquarters from Redwood City to San Francisco.

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6. 2011Metromile is founded

   David Friedberg and Steve Pretre founded Metromile in Redwood City, California, to develop a mileage-based automobile insurance model.

   Source

A digitally native, usage-based auto insurer focused on low-mileage drivers, transparent mileage-linked pricing, automated claims, and connected-car utilities.

• Pay-per-mile auto insurancePersonal automobile insurance

  Metromile's principal consumer product combined a base premium with a charge for each mile driven. The model was designed for lower-mileage drivers and used mileage as the defining variable in the usage-based pricing structure. It differed from behavior-based telematics insurance because the supplied description emphasizes distance rather than measurements such as braking, speed, or driving time. The product included customer service and round-the-clock claims support and was offered in selected United States states.

• Metromile PulseInsurance telematics hardware

  Pulse was a vehicle device that plugged into the car's OBD-II diagnostic port. It transmitted mileage information to Metromile for calculation of per-mile insurance charges. The same device also supported connected-car features by collecting trip and vehicle-health information used in the company's mobile application.

• Metromile driving appConnected-car software

  The mobile application presented drivers with trip and vehicle information and added practical ownership tools. Reported features included street-sweeping alerts, a car locator showing where a vehicle was parked, and a vehicle-health monitor. The app was available for Apple iOS and Google Android devices and formed an important part of Metromile's digitally native customer experience.

• Metromile TagConnected-car accessory2015

  Introduced in June 2015, the Metromile Tag was intended to give people who were not Metromile insurance customers access to the company's driving application. It connected wirelessly to smartphones through Apple's iBeacon technology and represented an attempt to separate the connected-car software experience from the insurance policy itself.

• Digital insurance platformInsurance software

  Beyond its own branded policies, Metromile developed a digital insurance platform that it licensed to insurance companies. The platform reflected the company's broader technology strategy, covering digitally delivered insurance capabilities and connected-car data rather than limiting the business to a single direct-to-consumer policy product.

• 2022Completion of Lemonade acquisitionM&A

  Lemonade's announced all-stock acquisition required completion before Metromile could be integrated into the acquiring company.

  What changed. The transaction closed on July 28, 2022.

  Aftermath. Lemonade subsequently laid off approximately 20 percent of Metromile's staff. The supplied sources do not establish the full post-acquisition status of the standalone brand.

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• 2021Public listing through a reverse mergerOther

  Metromile pursued access to public capital markets while operating as an insurtech company.

  What changed. The company became publicly listed in February 2021 through a reverse-merger transaction.

  Aftermath. Metromile remained publicly listed for a limited period before agreeing to be acquired by Lemonade later in 2021.

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• 2021Agreement to be acquired by LemonadeM&A

  Metromile was a publicly listed insurtech company operating a pay-per-mile insurance business and an insurance technology platform.

  What changed. Lemonade agreed to acquire Metromile in an all-stock transaction.

  Aftermath. The acquisition closed in July 2022, ending Metromile's independent corporate status.

  Implied transaction value. Approximately $500 million fully diluted equity value; approximately $200 million net of cash (Transaction announced November 2021)

  Source
• 2016Move into self-underwritingStrategy

  Metromile had operated with insurance-carrier relationships but sought greater control over its insurance product and economics.

  What changed. After a reported $192 million funding round and the acquisition of a carrier, the company began underwriting its own policies in September 2016.

  Aftermath. The move made Metromile both a technology company and a direct insurance underwriter, while it continued developing platform-licensing activities.

  Funding round. $192 million announced funding round (September 2016)

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• 2022Lemonade completes acquisition of Metromile

  The acquisition of Metromile by Lemonade was completed on July 28, 2022. Lemonade subsequently reduced Metromile's staff by approximately 20 percent.

  M&ALeadership change
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• 2021Metromile becomes publicly listed through a reverse merger

  Metromile became a public company in February 2021 through a reverse-merger transaction supported by Betsy Z. Cohen, who also joined its board.

  Other
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• 2021Lemonade announces agreement to acquire Metromile

  Lemonade announced an all-stock acquisition of Metromile, with the transaction announcement describing an implied fully diluted equity value of approximately $500 million, or about $200 million net of cash.

  M&A
  Source
• 2016Metromile begins underwriting its own policies

  After announcing a $192 million funding round and acquiring an insurance carrier, Metromile began underwriting its own automobile insurance policies.

  Other
  Source
• 2015Metromile introduces the Metromile Tag

  Metromile introduced a wireless Tag that enabled non-insurance customers to access parts of its driving application through a smartphone connection using Apple iBeacon technology.

  Product launch
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1. Metromile
2. Lemonade to Acquire Metromile
3. Lemonade Completes Acquisition of Metromile