SquareTrade Inc. is an American-based extended warranty service provider for consumer electronics and appliances[1] headquartered in San Francisco's SoMa district.
 | |
| Company type | Subsidiary |
|---|---|
| Founded | 1999 |
| Founder |
|
| Headquarters | Brisbane, California |
Area served | Worldwide |
Key people | Ahmed Khaishgi (CEO) Steven Abernethy (executive chairman) |
| Products | Consumer Electronics and Appliances Warranty |
| Revenue | US$1.32 billion |
| Parent | Allstate |
| Website | squaretrade squaretrade squaretrade |
Dispute resolution services
editCo-founded in 1999 by Steve Abernethy and Ahmed Khaishgi, SquareTrade launched as the first online service for resolving e-commerce disputes. SquareTrade worked with online marketplaces, such as eBay, utilizing an online negotiation tool to automate the dispute resolution process between sellers and buyers. Between 1999 and 2001, SquareTrade raised $15 million in funding from JP Morgan Partners, Weston Presidio Capital, and Draper Richards. That same year, the company launched a merchant-verification service, the SquareTrade Seal.[2][3] Both original services have since been discontinued.[4]
Warranty services
editIn 2006, SquareTrade began offering consumer protection plans for portable devices, appliances, and other electronics, both online and through large retailers. That same year, PC Magazine ranked it number 93 on its list of the "Best 100 Web Sites of the Year."[5] In 2012, Bain Capital and Bain Capital Ventures announced a $238 million investment in SquareTrade, which was the second-largest venture capital deal of the year.[6]
The company's underwriter has been AmTrust Financial Services, Inc., but as of 2013, SquareTrade was shifting toward Starr Indemnity.[7]
SquareTrade was acquired by Allstate in late 2016, for $1.4 billion,[8] joining Allstate's suite of consumer asset protection services.
Lawsuit
editIn late 2016, a class-action lawsuit was filed against SquareTrade, accusing the company of selling protection plans for products that were not eligible for coverage, which customers only discovered when filing a claim.[9]
References
edit- ^ Ramsey, Donovan X. (May 22, 2014). "Is It Worth It to Insure Your iWhatever?". Ebony. Retrieved 27 May 2014.
- ^ Collier, Marsha (2007-08-27). Starting an eBay Business For Dummies. John Wiley & Sons. pp. 106–. ISBN 9780470230312. Retrieved 27 May 2014.
- ^ McGrath, Lissa (2006-01-01). 20 Questions to Ask Before Selling on EBay. Career Press. pp. 56–. ISBN 9781564148544. Retrieved 27 May 2014.
- ^ Cortés, Pablo (2010-09-13). Online Dispute Resolution for Consumers in the European Union. Routledge. pp. 149–. ISBN 9781136943508. Retrieved 27 May 2014.
- ^ "The Top 100 Web Sites of 2010". PC Magazine. 2010-08-16. Retrieved 2013-04-03.
- ^ "Top 15 venture capital deals of 2012". Venture Beat. 2012-12-28. Retrieved 2013-04-03.
- ^ "Appliance Service Contract Underwriters, 17 October 2013". Warranty Week. 17 October 2013. Retrieved 27 May 2014.
- ^ "Allstate just shelled out $1.4 billion for a money-losing company". Crain's Chicago Business. Retrieved 2017-08-11.
- ^ Reformado, Wadi. "SquareTrade hit with class action". Retrieved 2017-08-26.
