PriyaPatel
TLDR:
- Intuit is set to acquire technology from Zendrive to enhance Credit Karma’s usage-based auto insurance feature, Karma Drive.
- The acquisition aims to make usage-based insurance more widely available, offering real-time feedback on driving habits and potential insurance discounts.
Key Elements
Intuit Inc. is acquiring technology from Zendrive to improve Credit Karma’s insurance tech, specifically the Karma Drive program. The acquisition includes key personnel from Zendrive, and the goal is to offer greater transparency and personalized discounts for safe driving behaviors.
Credit Karma’s usage-based auto insurance feature, Karma Drive, leverages telematics data to provide real-time feedback to members. The program has already facilitated millions of discounted policy offers, and the acquisition of Zendrive’s technology aims to make this type of insurance more accessible.
Joe Kauffman, president of Credit Karma, highlighted the economic climate and the need for Americans to reduce driving-related expenses. The acquisition aligns with Intuit’s broader goal of doubling household savings rates by 2030, indicating a strategic move to deepen its investment in insurance.
The terms of the deal were not disclosed, but legal advisement for the transaction was provided by Latham & Watkins LLP for Intuit. In addition to the acquisition news, Intuit Inc. has been performing well in its financial segments, leading to significant revenue growth and positive ratings from analysts.
