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

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.