Metromile

Pioneer in pay-per-mile insurance model before acquisition by Lemonade

Metromile was an insurtech company that pioneered pay-per-mile car insurance in the United States, targeting drivers who drove fewer miles than average. Founded in 2011, the company used telematics devices and mobile technology to track actual mileage and charge customers a base rate plus a per-mile rate, offering potential savings for low-mileage drivers. Metromile operated as a licensed insurance carrier in multiple states and also provided a digital platform with features like trip tracking, street sweeping alerts, and vehicle diagnostics. While Metromile was primarily an insurance technology company rather than an advertising technology company, it did utilize digital marketing and data analytics to acquire and serve customers. The company went public via SPAC merger in 2021 but struggled with profitability and growth challenges in the competitive insurtech market. In July 2022, Metromile was acquired by Lemonade, Inc. for approximately $145 million in stock. Following the acquisition, Metromile's operations were integrated into Lemonade's insurance platform, and the distinct Metromile brand and product offerings were discontinued. The acquisition allowed Lemonade to expand its car insurance capabilities and leverage Metromile's telematics technology and regulatory licenses.