We’ve made the decision not to renew our insurance policy with AXA which in turn, means we will not be able to connect drivers with cars when and where they want them for a few weeks. This may sound disastrous but actually we believe it is the right thing to do for our members and our business.
From a business point of view, we do not want to be an Uber or a WeWork, raising more money than we need to aggressively grow simply to try and ‘kill off’ other companies in the mobility space. We do not want to ‘grow at all costs’ and do not have a ‘winner takes all’ mentality. Yes, we want to grow but we want to do it the right way and at the right pace. Focusing on our members, giving them the service and the product they want, rather than worrying about market share and not focusing on unit economics. Here at hiyacar, we care about a pathway to profitability, not for greed but for sustainability. Changing mobility is more of a marathon than a sprint, so we need to run a good business to make sure we have the time to help solve as many people’s mobility problems as possible.
We owe a lot to AXA and will be eternally grateful for their support. They took a risk on us when no one else would back in 2015 and partnered with us to launch a new type of insurance. The reason for parting ways though is that our proposition is very different to what they are used to. This is nobody’s fault. We are not traditional and therefore need an insurance partner who is similar and willing to work with us to provide something that is fit for purpose. While price is important, so is coverage and flexibility of terms.
The decision to not renew was not taken lightly but we feel, even with the short period of downtime, that the outcome will be worth it. It may be considered a risk but it is a calculated one. Stepping away from a giant in the insurance world who is well known and could be seen as a safety net could seem to not be a smart move. It is however definitely not a knee-jerk reaction. It’s a calm and informed choice that was made simply by sticking to our values. Making sure the new policy has the same or better coverage as before was a must. It had to be affordable for the members (and business). It had to offer new and exciting features that make sharing cars easier for owners and drivers. We are thrilled that we have something that ticks all those boxes and are excited to officially announce more soon.
The office was a hive of activity yesterday with all teams, from support to tech, from the CEO and CCO, on the phone talking to our members to explain the decision. We also wanted to give them advanced warning of the short downtime between one policy ending and the new one starting. The reaction was overwhelmingly positive: our members could see that they had been heard and understood why the change was being made. It is an exciting time and gives us the opportunity to make some more positive changes so when we relaunch in a few weeks our system will be even better.
‘If your choices are beautiful so too will you be.’ Here at hiyacar we will continue to make beautiful choices that might not always be easy but will always be centred around our values and our members rather than around targets, unsustainable growth at all costs or other arbitrary factors.