Buckle Corp, an insurance and credit provider for rideshare and delivery drivers and those who earn less than the average American wage, announced on Wednesday (Sept. 29) it raised $60 million through a Series B funding round. The round was led by Volery Capital Partners with contributions from Eldridge, Assurant Ventures, as well as HSCM Bermuda.
As part of the investment, Volery Capital Partners will join Buckle’s Board of Directors, according to a press release. HSCM Bermuda also increased Buckle’s surplus term loan from $10 million to $20 million to offer extra capital to bolster the expansion of Buckle’s Gateway Insurance Company.
Buckle plans to use the funds to grow its insurance-as-a-service platform, according to the announcement. The company’s auto insurance policy for gig economy workers uses rideshare and delivery information from Transportation Network Company platforms to underwrite policies, with coverage available to traditional taxi, limousine, rideshare fleets and non-standard personal vehicles, per the announcement.
The company also purchased and recapitalized three admitted insurance carriers, Gateway Insurance Company, American Service Insurance Company, and American Country Insurance Company, according to Buckle.
The Buckle insurance coverage earmarked specifically for gig economy workers is among recent perks available to rideshare and delivery drivers. Uber last month announced a collaboration with retail technology company GetUpside to offer fuel and convenience store promotions to Uber drivers and delivery people. As part of the joint effort, Uber drivers receive cash back on gas purchases and can save inside stores, with as much as 22 percent cash back on their purchases via the GetUpside app.
In addition, a flexible benefits fund was introduced in Canada to assist gig economy workers in the ride-hail and food delivery space. The measure calls for all gig industry stakeholders to be transparent and share data on workers’ hours and earnings. The fund provides cash benefits to gig workers that would be earmarked for retirement, life insurance, education, dental or health benefits that are not covered by the universal healthcare system in Canada.