(Bloomberg) -- After HR startup Zenefits lost its founding chief executive officer this year in an embarrassing regulatory compliance scandal and cut 250 jobs, another San Francisco startup saw an opportunity to capitalize on its larger rival's implosion. Gusto, a venture-backed unicorn specializing in payroll software, is pushing harder into Zenefits' main business: selling insurance to small companies.

Josh Reeves, co-founder and CEO of Gusto, said Zenefits' recent stumbles have helped send customers its way. "It definitely creates an even bigger opportunity because we have a lot of clients, who were on Zenefits, who are moving to Gusto," he said.

Register or login for access to this item and much more

All Digital Insurance content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access