Uber invests in Latin American motorcycle lender Galgo to finance gig workers

By Kylie Madry

MEXICO ‌CITY, Aug 12 (Reuters) - ​Uber ​will invest in Galgo, a Latin American lender focused on motorcycle purchases, as the ‌ride-hailing giant looks to expand access to vehicles ⁠for drivers and couriers, the companies said on Wednesday.

• Santiago-based Galgo ‌said the investment is ‌part of a partnership that will start in Mexico before expanding to Chile and Colombia in the ​first quarter of 2027.

• It did not disclose financial terms.

• The plan is to offer financing products ⁠tailored to Uber drivers and delivery workers, Galgo said.

• Galgo said the ​investment will fund expansion into a fourth Latin American country in early 2027.

• It will ​also contribute to spending on ‌technology, data and artificial intelligence.

• Galgo provides motorcycle sales and financing to mass-market customers, ⁠including borrowers with limited access to traditional bank credit.

• The deal underscores Uber's broader interest in vehicle financing and the ⁠importance of motorcycles in Latin America, where they are widely used ​for low-cost transport and delivery work.

• Co-founder and co-Chief Executive Sebastian Parot said the company aims to grow annualized revenue to $500 ‌million by 2030 from about $100 million now.

• Founded in 2018, the company has ‌so far raised $100 million in capital.

• Chairman Diego Fleischmann ⁠said Galgo is growing ‌about 50% a year ​and reached net income break-even in the latest quarter.

(Reporting by Kylie Madry; Editing by Fabiola ‌Arámburo)

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