Uber backs Galgo to expand motorcycle financing for platform workers in Latin America

Uber has invested in Chilean fintech Galgo as part of a regional partnership aimed at increasing access to motorcycle financing for drivers and delivery workers in Latin America.

The financial terms and size of Uber’s stake were not disclosed. The first financing products developed under the agreement will be offered in Mexico, followed by an expansion to Chile and Colombia during the first quarter of 2027.

Galgo also plans to enter a fourth Latin American market in early 2027, although the company has not identified the country.

The investment will finance the development of credit products adapted to workers using Uber’s mobility and delivery platforms, as well as Galgo’s expansion in technology, data analysis and artificial intelligence.

For Uber, the transaction addresses one of the main barriers to expanding motorcycle-based services in the region: many potential drivers and couriers do not own a vehicle and have limited access to conventional bank financing.

Financing motorcycles outside traditional banking

Founded in Chile in 2018 under the name Migrante, Galgo initially focused on providing credit to Venezuelan migrants who had difficulty accessing the formal financial system.

The company subsequently expanded its business model to serve broader groups of consumers without established credit histories. It now combines the online sale of motorcycles with digital financing and works through a network of more than 2,000 partner dealerships in Mexico, Chile and Colombia.

Unlike traditional lenders, Galgo uses proprietary technology and alternative information to assess applicants who may not have payslips, long banking records or formal employment contracts.

Its target market includes independent workers, migrants and consumers whose income is generated through informal or platform-based activities.

Motorcycles are frequently used as work tools in Latin American cities because their purchase and operating costs are lower than those of cars. They also allow couriers and drivers to navigate congested urban areas and perform more trips during a working day.

Access to a vehicle can therefore determine whether an individual is able to generate income through delivery or passenger transport applications.

Uber seeks to expand its driver and courier base

The partnership gives Uber a way to increase vehicle availability without directly becoming a motorcycle retailer or traditional bank.

By connecting potential workers with Galgo’s financing platform, Uber can reduce the initial cost of joining its ecosystem. A larger pool of motorcycles could support both passenger transport and delivery services, particularly in markets where two-wheeled mobility is expanding faster than car ownership.

The strategy also provides Galgo with access to a defined group of potential customers whose income depends on regular vehicle use.

However, the companies have not explained whether information generated through Uber—such as trip frequency, earnings or time connected to the application—will be incorporated into Galgo’s credit assessments.

They have also not disclosed the interest rates, deposits, repayment periods or eligibility requirements that will apply to the new products.

Those conditions will determine whether the agreement offers workers affordable access to productive assets or increases their exposure to debt linked to variable platform earnings.

Galgo targets fivefold revenue growth

The alliance forms part of Galgo’s plan to expand its regional lending operation.

The company currently generates approximately €86 million in annualised revenue and intends to increase that figure fivefold to around €430 million by 2030.

Galgo said its revenue is growing at approximately 50% annually and that it reached net-income break-even during its latest reported quarter.

Since its creation, the fintech has raised approximately €86 million in capital. Other funding agreements and institutional credit lines provide the resources used to originate motorcycle loans.

The company finances approximately 7,500 motorcycles per month and has served more than 200,000 customers, according to figures reported around the transaction.

Uber’s investment will support the development of new risk models, automation and artificial intelligence tools intended to accelerate credit decisions and manage a larger loan portfolio.

The challenge will be maintaining credit quality as Galgo enters new countries and increases lending among borrowers with limited access to conventional financial services.

Financial inclusion and worker indebtedness

The agreement is being presented as a financial inclusion initiative because it opens access to vehicles for people excluded by traditional banks.

A motorcycle can provide a direct route into paid work, particularly for migrants and independent workers who lack the documentation or credit history required for conventional vehicle financing.

Galgo previously worked with the International Finance Corporation, part of the World Bank Group, to improve its risk models and develop products for lower-income consumers, migrants and people with little or no banking history.

Yet financing platform workers also introduces risks. Income from mobility and delivery applications can fluctuate according to demand, working hours, fuel prices, competition between drivers and changes to platform commissions.

Borrowers must continue repaying the vehicle even when their earnings fall. They also assume maintenance, insurance, depreciation and accident-related costs.

The commercial outcome will therefore depend not only on the number of motorcycles financed, but also on default rates, the total cost of each loan and the ability of workers to generate sufficient income after operating expenses.

Clear information about rates, fees and data use will be particularly important because the financing products are being directed towards customers with fewer alternatives in the conventional banking system.

A closer connection between platforms and credit

Uber’s investment in Galgo reflects a broader convergence between mobility platforms and vehicle-financing companies.

Digital transport businesses depend on a continuous supply of drivers and couriers but generally do not own the vehicles used to provide their services. Financing partnerships allow platforms to influence vehicle access while keeping ownership and debt on the worker’s side.

For lenders, platform workers form a large customer segment with a clear economic use for the asset being financed. Their activity can also generate data that may help assess repayment capacity, subject to privacy rules and customer consent.

The partnership will begin in Mexico, one of Latin America’s largest motorcycle and platform-work markets. Its planned expansion into Chile and Colombia will test whether the same lending model can operate across different financial, labour and consumer-protection regulations.

The unnamed fourth market could further extend Galgo’s geographic reach during 2027.

For Uber, the investment could increase the number of workers available for its mobility and delivery services. For Galgo, it provides capital, customer access and a commercial partnership with one of the region’s largest digital platforms.

The final impact on workers will depend on the terms that have yet to be announced. Expanding credit can lower the cost of entering the platform economy, but its value will be determined by whether motorcycle ownership generates sustainable income after financing and operating expenses are taken into account.