Root, Inc.

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Root Company
Company typePublic
Nasdaq: ROOT
IndustryInsurance
FoundedMarch 2015 (2015-03)
FoundersAlex Timm
Dan Manges
Headquarters
Columbus, Ohio
,
United States
Area served
34 States (Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware,Florida,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)
Rob Bateman (Chief Financial Officer)
Matt Bonakdarpour (Chief Technology Officer)
Dan Rosenthal (Chief Revenue & Operating Officer)
ProductsCar insurance, Renters insurance, Homeowners insurance
RevenueIncrease $362.2 Million(2022)
Increase -$497.9 Million(2022)
Number of employees
1,241 (2022)
Websitewww.joinroot.com
Footnotes / references
[1]

Root Inc. Founded in 2015 and based in Columbus, Ohio, Root Inc. (NASDAQ: ROOT) is the parent company of Root Insurance Company. Root is revolutionizing insurance through data science and technology to provide consumers a personalized, easy, and fair experience. The Root app has close to 11 million app downloads and has collected more than 18 billion miles of driving data to inform their insurance offerings. Root Insurance is the nation’s first licensed insurance carrier powered entirely by mobile.[citation needed]

About

Root required drivers to download their mobile app, and perform test driving for a couple of weeks. If the driver passed 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.[2] Root advocates to drop the credit score when determining how much car insurers decide to charge a customer as a way to break barriers on racial and social inequality issues.[3]

History

Root, Inc was founded in March 2015 by Alex Timm and Dan Manges. In 2021, Dan Manges co-founder retired from CTO and remained a consultant to the company in an advisory role through December 31, 2021.[4]

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.[5]

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. The plan in the collaboration is to use both company's technology to develop an embedded experience for customers at the point of purchasing a car through Carvana.[6]

On January 26, 2022, Root closed on a $300 million five-year term loan with BlackRock. The maturity of this term loan is January 27, 2027.[7]

On September 29, 2022, the split-adjusted share price of Root stock had fallen to below 2% of its IPO.

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.[8] Root had collaborated with Wallace for an advertisement during the 2020 season that highlights his involvement in racial equality movements.[9]

References

  1. ^ "Root Insurance Press, Bios & Media | Resources for Journalists". Root Insurance. Retrieved 2019-08-11.
  2. ^ 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.
  3. ^ 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.
  4. ^ "Two C-suite execs announce resignations from Root Insurance". www.bizjournals.com. Retrieved 2021-12-16.{{cite web}}: CS1 maint: url-status (link)
  5. ^ Muoio, Danielle (2017-03-15). "Tesla owners are already getting insurance discounts for using Autopilot". Business Insider. Retrieved 2019-07-04.
  6. ^ Williams, Mark. "Carvana to invest $126 million in Root with new partnership". The Columbus Dispatch. Retrieved 2021-12-16.
  7. ^ "Root Announces Closing of New Term Loan Facility with BlackRock". www.globenewswire.com. Retrieved January 26, 2022.{{cite web}}: CS1 maint: url-status (link)
  8. ^ "23XI Racing announces sponsors". Jayski's Silly Season Site. NASCAR Digital Media, LLC. December 14, 2020. Retrieved December 14, 2020.
  9. ^ "Bubba Wallace Offers No Apologies In Powerful New Ad". BET. October 27, 2020. Retrieved December 16, 2020.

External links

  • Official website
  • Business data for Root Inc.:
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