Roadzen Inc (NASDAQ: RDZN), an American company using AI to streamline the auto insurance process, was up by over 57 per cent on Tuesday after securing a new contract with Motive.
The new partnership will see that Roadzen provides Motive with roadside assistance and towing services for its customer base consisting of more than 1 million vehicles. This will be completed through Roadzen’s National Automobile Club (NAC) — a 100-year-old roadside help services specialist it acquired last summer.
“We are integrating our state-of-the-art AI products for vehicle inspection, dispatch and claims management at NAC to offer customers an end-to-end automated claims and roadside experience,” Roadzen chief executive, Rohan Malhotra, specified in 2023 when the acquisition was completed.
As pointed out in Roadzen’s press release this week, data from the American Trucking Association has shown that about 25 per cent of U.S. trucks will break down and require assistance every year.
“NAC’s contract with Motive generates direct revenue to Roadzen based upon per vehicle per incident, as it provides 24/7 service coverage nationwide at substantial savings to Motive customers,” Roadzen specified.
Motive is a software developer focusing on vehicle fleet management for other businesses. Its specialities include GPS tracking systems, dashcams, electronic information logging, collecting vehicle or equipment data and monitoring driver behaviour.
The company’s AI-integrated dash cams can identify if the person behind the wheel is being reckless. Motive customers will have access to the NAC’s roadside services as of Dec. 16.
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Roadzen’s revenue surges
It went up 245 per cent year-over-year during the fiscal 12-month period ending Mar. 31 to US$46.7 million. This achievement has also helped improve investor confidence.
The insurance operator went public at the end of September last year.
Roadzen’s goal is to provide insurance companies, vehicle owners and car manufacturers with AI technology that can help simplify insurance claims, inspect vehicles, collect valuable data and manage risks.
The New York-based company has eight offices throughout the globe and currently employs about 400 people.
Researchers expect the market for AI integration in the automotive sector to grow immensely in the years to come. Precedence Research foresees a compound annual growth rate of 28 per cent for the next nine years while Markets and Markets anticipates 24.1 per cent until 2030.
rowan@mugglehead.com
