Google is looking to generate revenue from product searches
According to Reuters, Alphabet’s Google is set to team up with a number of leading US retailers including Target, Walmart, Home Depot and Costco Wholesale in the aim of generating revenues from product searches that take place across its platforms.
Under the new initiative, named the Shopping Actions program, these retailers will be allowed to list their products on Google Search, Google Assistant and Google Express. In exchange for being able to do so, Google will take a cut from each purchase that has originated from one of these platforms, creating a new significant source of revenue for the company.
According to Reuters, speaking to Google’s President of Retail and Shopping, Daniel Alegre, mobile searches on Google's platform that look to find out the availability/ location of products have increased 85% in the past two years.
With many online shoppers currently being directed to Amazon for their product purchases, the new initiative will both generate significantly more revenue for Google and enable other companies such as Target and Walmart to more readily compete with Amazon in the ecommerce sphere.
According to early results, the program has boosted the average size of customer’s shopping baskets at the partnering retailers by 30%. One example of this is with Ulta Beauty, with the company’s CEO having revealed that it’s average order value has increased 35% since partnering with Google.
CB Insights: US Insurtechs Compete In A Now Global Market
In the first half of the year, insurtech companies around the world have raised US$7.4bn, nearly doubling their funding in Q2. According to Digital Insurance, insurtechs have raised US$4.8bn in Q2—an 89% increase in funding from Q1. But US firms are no longer the sole beneficiaries.
What Are the Stats?
Out of the 15 Q2 mega-rounds—those that top US$100mn—only eight included American firms. Pretty good, you might say. That’s over half! But US companies only made up 38% of the deals, which marks a 10% drop from Q1 and a 12% drop from 2020. Technically, therefore, US insurtechs are less influential than they’ve been in the past. But who says this is a bad development?
Despite my American citizenship, I’d argue that a more globally diverse insurance market is only for the best. Many of the world’s citizens who could most benefit from improved insurance services live outside of the States—and deserve local, tech-savvy services.
Why Does This Matter?
You’re always going to see the typical insurtech contenders from Western countries. For instance:
- German-based wefox: US$650mn Series C
- UK-based Bought By Many: US$350mn Series D
- US-based Collective Health: US$280mn Series F
But it’s critical that we address risk across the world. American insurtechs might be some of the most technologically skilled firms in the industry, but it’s not their first goal to address floods in Southeast Asia, crop destruction in China, and COVID complications in South Africa. That’s why we should celebrate that the recent Q2 round included insurtechs from 35 different countries.
According to CB Insights’ Q2 2021 Quarterly InsurTech Briefing, this was the first time that they’d observed insurtech activity in Botswana, Mali, Romania, Saudi Arabia, and Turkey. And ‘from a product, service, distribution, and underlying risk perspective, we—as a society and as an industry—are moving at an unprecedented speed’, says Dr. Andrew Johnston, Global Head of Willis Re InsurTech.
Just ask CB Insights. InsurTech value propositions have resonated with the world.