The Genesis of Jerry: From Automotive Repair to a Car Ownership Super App

Art Agrawal’s early experiences with car ownership in India instilled in him an appreciation for vehicles, though access was limited. Moving to the U.S. revealed the financial burdens and complexities associated with maintaining a car.

In 2012, Agrawal co-founded YourMechanic, a company providing automotive mobile maintenance and repair services, even achieving recognition at TechCrunch’s Disrupt event. However, the challenge of simplifying car insurance for consumers remained a persistent thought.

Founding Jerry and its Mission

This led to a collaboration in 2017 with Lina Zhang and Musawir Shah, resulting in the creation of Jerry. Jerry is envisioned as a mobile-first “super app” designed to streamline all facets of car ownership.

The Palo Alto-based startup launched its car insurance comparison service in January 2019, leveraging the power of artificial intelligence and machine learning. Since then, it has quietly grown to serve nearly 1 million customers throughout the United States as a fully licensed insurance broker.

Agrawal emphasizes Jerry’s goal: to consolidate the fragmented processes consumers currently face when managing their vehicles. “Jerry is out to change that,” he stated.

Securing Funding for Expansion

Today, Jerry announced the successful completion of a funding round exceeding $57 million. This includes a new $28 million Series B investment spearheaded by Goodwater Capital.

A diverse group of angel investors also participated, including Johnson Cook, president of Greenlight, and Timothy Sheehan, CEO of Greenlight. Other investors include Tekion CEO Jay Vijayan, Jon McNeill, CEO of DVx Ventures and former Tesla president, Brandon Krieg, CEO of Stash, and Ed Robinson, co-founder and president of Stash.

Beyond Insurance: A Holistic Approach to Car Ownership

Agrawal clarifies that Jerry distinguishes itself from other automotive marketplaces by offering comprehensive support for car owners. This encompasses not only insurance but also repair, maintenance, and warranties.

While currently prioritizing insurance, the company intends to utilize the newly acquired capital to expand into additional areas of car ownership.

Streamlining the Insurance Process with Automation

Jerry’s approach differs from competitors by providing a complete transaction within its app. Instead of redirecting users to insurance carriers’ websites, Jerry automates the process.

The platform delivers customized quotes from over 45 insurance providers “in 45 seconds.” Consumers can then finalize their coverage directly through Jerry, with the app even handling the cancellation of existing policies.

“With Jerry, you can complete the whole transaction in our app,” Agrawal explained. “You don’t have to fill out a bunch of forms.”

Significant Savings and Revenue Growth

The company asserts that its customers realize an average annual savings of approximately $800 on their car insurance premiums. Jerry also extends a similar service for home insurance, though its primary focus remains on automotive needs.

Jerry’s performance demonstrates its effectiveness. The company experienced a tenfold increase in revenue in 2020.

In 2019, Jerry facilitated a few million dollars in insurance sales. Agrawal projects that 2021 will see sales “three to four times” higher than the previous year.

He highlights the unique automation Jerry provides, stating, “What we have done is we have automated the end to end journey for the consumer using our infrastructure.”

A Recurring Revenue Model

Jerry generates revenue through a commission earned on premiums when customers purchase policies through the platform from carriers like Progressive.

Agrawal emphasizes the stability of this model: “For us, it’s 100% of our revenues,” contrasting it with marketplaces reliant on lead generation.

Investor Confidence and Future Outlook

Chi-Hua Chien of Goodwater Capital acknowledges the historically challenging customer experience within the insurance sector.

“They took something that has historically been painful, intimidating and difficult for the customer and made it effortless,” Chien commented. “That experience will more broadly over time apply to comparison shopping and maintenance, too.”

Chien also points to the enduring demand for auto insurance as a key factor. “That’s a large market that’s not going to go away.” He believes Jerry’s AI-driven approach will continually improve service and accelerate growth.