CEO of A.I.-Driven Insurance Start-Up Lemonade Says Mockery Is the Highest Form of Flattery
*By Conor White*
Lemonade, the insurance startup that uses A.I. and chatbots to pay claims within seconds, saw exponential growth in the U.S. in 2018, but the company is setting its sights on Europe for its next phase of expansion.
"We've decided that if people in Berlin, and Tokyo, and New York are using Spotify ($SPOT), and Netflix ($NFLX), and Uber, why not Lemonade?" CEO and co-founder Daniel Schreiber asked in an interview on Cheddar.
The burgeoning company's tech-driven approach has caught the attention of some of its more traditional competitors. That includes State Farm, which [released an ad in October](https://youtu.be/KIWfc9aI1YI) poking fun at artificial intelligence and robots, a not-so-thinly veiled dig at the startup. But Schreiber said he didn't mind the mockery.
"We found it remarkable that ... the largest insurance company in the nation, that \[is\] a thousand times bigger than Lemonade, would spend millions of dollars taking us on," Schreiber said. "I really found that interesting and deeply flattering honestly."
The company even took the unusual step of paying to promote the ad online.
"They're mocking us," Schreiber explained, "but I really think it's a bit of a boomerang that comes back and hurts them much more than it hurts us."
The CEO highlighted some of Lemonade's 2018 accomplishments, including $57 million in sales and increasing the number of homes it insures by more than 300,000.
But Schreiber said he is proudest of his company's reputation with customers.
"You go now to any of the consumer ratings sites, and you'll find that USAA and Lemonade compete for the number one spot in terms of customer satisfaction," he said.
"Growing fast is fabulous," he said, "but if you do it at the expense of customer satisfaction, that's a price not worth paying."
For full interview [click here](https://cheddar.com/videos/lemonade-insurance-plans-european-expansion).
From Wall Street to Silicon Valley, these are the top stories that moved markets and had investors, business leaders, and entrepreneurs talking this week on Cheddar.
On this episode of ChedHER: Lissy Hu, CEO and Founder of CarePort, powered by WellSky, breaks down how to avoid 'mom guilt' at work; Katie Hotze, Founder and CEO of Grocery Shopii, explains how she's creating a platform that allows for personalized meal planning and recipes into a grocer's eCommerce platform; Nicole Wegman, Founder and CEO of Ring Concierge, talks how she's creating luxury designs for women, by women.
Londoners are facing travel chaos after around 10,000 transport workers walked off their jobs for the second day this week, leaving almost all of the capital’s subway lines suspended or severely disrupted.
Katie Hotze, Founder and CEO of Grocery Shopii, joins ChedHER to discuss how she's creating a platform that allows for personalized meal planning and recipes into a grocer's eCommerce platform, and her learnings from one of her very well known investors: Lance Bass.
Independent artists were caught off-guard and the Epic acquisition of Bandcamp quickly sparked fears it could ruin what many saw as their last best hope of getting paid online for their work.
Trying to meet people online has become a predictable routine. Now, one app is switching it up by allowing users to swipe right on plans and outings rather than faces. Pitch Social co-founders Daniel Antonio and Ryan Snowden joins Between Bells to talk about their app.
Playboy released its fourth quarter and full year 2021 results, reporting an annual revenue of $247 million, up 67 percent year-over-year. The venerable lifestyle and entertainment brand had a whirlwind of a year — going public for a second time, completing three acquisitions, and growing its workforce to more than 1,100 employees, all while dealing with ongoing supply chain issues and other COVID-related challenges. CEO Ben Kohn joined Cheddar's Opening Bell to discuss the long pivot away from its legacy print product to digital. "It gives us a truly competitive advantage, especially when you think of this world we live in today with the changes to iOS last year, what you saw happen with Facebook, the lack of performance marketing," he said. "We now have an organic audience in partnership with our creators that we can market other products and services to as well."
AI-based adtech firm Adtheorent released its first earnings report as a public company Thursday after the bell. The company went public via SPAC deal in December and has since seen strong profit and revenue growth, with connected TV increasing 220 percent in Q4. Jim Lawson, CEO, AdTheorent, joined Cheddar's Opening Bell to discuss.
