Intuit to acquire Zendrive technology to boost Credit Karma’s auto insurance offering
Intuit Inc. (Nasdaq: INTU), a leading global financial technology platform, has announced its agreement to acquire key technology from Zendrive, a premier mobility risk intelligence provider. This strategic acquisition is set to enhance the capabilities of Intuit’s subsidiary, Credit Karma, particularly in expanding its usage-based auto insurance product, Karma Drive. Key Zendrive personnel, including CEO Dennis Ellis and Co-founder CTO Pankaj Risbood, will join Credit Karma to spearhead innovation and adoption efforts.
Karma Drive leverages telematics technology to offer real-time feedback on driving behavior, allowing Credit Karma members to access potential discounts before purchasing an insurance policy. This initiative places discount opportunities upfront, offering consumers greater control and certainty over their insurance expenses. The telematics-driven model has already yielded over 4 million discounted policy offers and is enhancing carrier visibility into driving behaviors that predict driving risks more effectively than traditional measures like credit scores.
Joe Kauffman, president of Credit Karma, highlighted the importance of this acquisition against the backdrop of rising insurance costs and general economic inflation. “Karma Drive gives our members access to personalized discount offers based on safe driving habits, without first having to purchase a policy. With Zendrive’s technology and expertise, we strive to make usage-based auto insurance more accessible than ever and bring more transparency, fairness, and accuracy to consumer auto insurance pricing,” said Kauffman.
Zendrive’s mission has been to enhance road safety through data and analytics. Dennis Ellis, CEO of Zendrive, expressed enthusiasm about joining forces with Intuit, stating, “Intuit’s customer-obsessed culture is a perfect match for our team. Together we will democratize access to fair insurance for all Americans based on their driving habits, not their financial situation.”
This acquisition aligns with Intuit’s broader mission to power prosperity worldwide and its commitment to doubling the household savings rate of customers by 2030. The deal is expected to close in the fourth quarter of FY24, deepening Intuit’s investments in the insurance sector to help Credit Karma members achieve significant savings on insurance.