Vecto is a vendor-neutral technology platform that bridges the gap between insurance companies and an expansive mobility network. They seek to provide insurers with a broad group of rental car providers and alternative mobility services when their insureds or claimants need a rental replacement vehicle. Andrew Daniels sat with Co-Founder and CEO, Brian Aumueller, to learn more about how Vecto is impacting the industry.
What is Vecto’s client focus?
“We focus on insurance companies and their ability to access more mobility alternatives for the rental replacement process. In turn, we focus on creating opportunities for rideshare, P2P and traditional rental car companies to better compete and offer value in this space.”
What does your product do?
“We offer a network of car rental companies that can support property and casualty insurance companies that have a rental replacement need.”
How much capital have you raised?
“We've raised $500,000.”
Was the company born from within or outside the industry?
“Three of us came from car rental in some capacity, but that was a long time ago. We have our CTO who was with two insurtech companies. Finally, we have a member of our strategic advisory board who is a 30-year Senior VP from Nationwide.”
What growth metrics have you accomplished over the last 12 months?
“We had our second pilot start. We were also a top-ten finalist for the State Farm ITC event in Vegas as well as InsurTech New York. In the past twelve months, we became a Guidewire InsurTech Vanguard. Finally, we got our first dollar in revenue in the last year."
Within your domain, what is the current challenge that the industry is facing?
“When someone's car is in a shop, they get a rental replacement, but there's limited customer choice. They basically have to go to one car rental company. It doesn't matter if there's one car available or a million available; it's all the same price per day. These claims departments all ask us, ‘If we start a rental replacement process today for your claim center, would you do it as it's being run today?’ They always overwhelmingly say no because the world doesn't work with rate sheets. It's about vendor neutrality, giving customer options, enhancing customer experience, enhancing our adjuster efficiency, saving money and creating alternatives to make that happen.”
How does Vecto take a unique approach to providing value?
“A couple of areas come to mind. One is vendor neutrality. We're agnostic with vendors, so our unique approach is using Vecto to enhance your options. We can bring on car rental companies. We have Uber and Lyft agreements. Use us to plug into everything that's available today and in the future. Make sure that you have the confines of pricing, so you can save and also enhance the customer experience by letting them have options.”
What inspired the team to start this company?
“I had this idea a long time ago. Then a similar, better idea came six years ago. Two years ago, I finally decided to do something about it. On a rainy Saturday, I realized this has been going on for 40 years. Whether it's one year or 20 years down the road, rental replacement is not going to be done this way. Why not let it be us? That's what the inspiration was. Why not be the one to facilitate the change?”
Can you share any goals for the next 12 months?
“We want to secure our first round of investment, so we can bring on more industry expertise in terms of talent onboard. We need to also expand our provider network, and we need talent to do that. Finally, we want to bring on more insurance companies. We have signed two, one of which is in the Top 15, and are looking to onboard eight more in the next twelve months.”
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