In business, money pours either in or out. Previously, Uber has divested, or pulled out its funds from its long-time partner, Serve Robotics, due to clashes, or to prevent further clashes.
This time, Uber has invested a confidential amount into Galgo, a fintech company in Chile, in order to expand motorcycle lending in the area. Read on for the scoop.
Uber x Chile
Chile, a country in South America located in the southern region, has forged a strategic partnership together with Uber, particularly with its financial technology firm Galgo, to expand motorcycle financing for drivers and delivery partners not just across Chile, but across Latin America.
Motorcycles are needed more than ever in this part of the world. Galgo, originally founded in Chile in 2018 with the name Migrante, is a famous Chilean fintech company and digital vehicle store.
Galgo specializes in providing motorcycle and auto loans to underserved populations, particularly gig economy workers, delivery drivers, and migrants, hence the name. Situated in Santiago, Chile, Galgo also has operations in Peru, Colombia, and, of course, Mexico.
“[We are the] leading technology platform for the sale, financing, and purchase of motorcycles, specially designed for the majority, not a few. We connect millions of people who want a motorcycle with the thousands of dealerships who sell them, enabling them with a purchasing journey that is delightful and a lending solution built for everyone,” Galgo told Ridesharingforum.com.
Where the investment will be utilized
Under this partnership, which will launch in Mexico first before expanding around Chile, Colombia, and other markets in the first quarter of 2027, the investment will be utilized to develop financing products for Uber drivers and delivery affiliates, penetrate brand-new markets, and invest in technologies, data, and AI.
Galgo co-founder and co-chief executive officer Sebastian Parot told RSF, “The alliance will allow Galgo to double down on the gig-economy segment by jointly developing a product that gives cheaper credit exclusively for Uber delivery workers.”
The fintech firm has successfully financed more than 200,000 people and around 7,500 motorcycles monthly. It has raised over $100 million and secured over $350 million in credit lines.
Its revenue is growing 50 percent yearly, and the company has, so far, reached net-income break-even in the latest quarter.
“Motorbikes are part of Latin American culture because they offer a practical solution for the 60 percent of the population that can’t afford a car,” Parot continued. “A motorbike is both a tool for work and an affordable form of transportation, with monthly payments that people can manage.”
Uber is the world’s number one ridesharing app. Uber connects riders with drivers through its mobile app. Passengers enter their destination, select a ride option, and request transportation. Nearby drivers can accept the trip and navigate to the pickup location. The app provides estimated fares, route tracking, and digital payment, while riders can rate their experience after the ride. RSF, your newsroom for ridesharing, coupons, food deliveries, business, lifestyle, and so much more! ‘Til then!