Uber, Galgo Target Vehicle Ownership for Latam’s Gig Workers

When Uber announced a strategic equity investment in Latin American motorcycle platform Galgo this week, the headlines focused on a familiar narrative: a Silicon Valley giant backing a fast-growing regional tech player to expand its two-wheeled fleet.

Behind the corporate announcement, however, lies a far more ambitious operational thesis. By pairing Uber’s platform data with Galgo’s proprietary underwriting engine, the two companies are mounting a direct challenge to Latin America’s commercial banking system, targeting an unbanked gig-economy workforce that traditional financial institutions have historically underserved.

The strategic partnership will launch first in Mexico before expanding to Chile and Colombia in 1Q27. Beyond financing tailored credit solutions for Uber drivers and couriers, the capital injection will fund Galgo’s entry into a fourth Latin American market in early 2027, support investments in proprietary credit algorithms, and accelerate the platform’s path toward its goal of reaching US$500 million in annualized revenue by 2030.

BofA Securities acted as exclusive financial advisor to Galgo on the transaction. Financial terms of Uber’s equity stake were not disclosed.

Solving the Unbanked Gig Worker Equation

For Latin America’s delivery couriers and rideshare drivers, securing a personal vehicle remains one of the largest economic hurdles to entering the workforce. Traditional commercial banks typically require formal income verification, credit histories, and collateral—barriers that automatically exclude a large share of gig workers.

“More than 80% of our customers say they had never had access to a financing solution like ours. They might have had a store credit card to buy a small appliance, but never enough credit to finance a durable, income-generating asset like a motorcycle. Evaluating an asset that generates income is fundamentally different from evaluating one that does not,” said Francisco Eterovic, co-founder and co-CEO, Galgo, in an interview with MBN.

Galgo was founded to bridge this structural gap. Originating in Chile as a microfinance provider for Venezuelan migrants, the company pivoted entirely to two-wheelers after recognizing the massive, underserved demand for commercial transport vehicles. Today, Galgo operates as an asset-light marketplace, partnering with more than 2,000 brick-and-mortar dealerships without holding vehicle inventory itself.

“Basically, we allow motorcycle dealerships to sell more because we provide point-of-sale financing, meaning a higher percentage of store traffic can actually complete a purchase,” Eterovic explained.

The partnership with Uber introduces a crucial new variable to Galgo’s underwriting model: direct access to platform operational data. With driver permission, Galgo can analyze historical platform earnings and driving activity to evaluate creditworthiness, bypassing traditional credit bureaus entirely.

“A critical part of this alliance is how we can access information we could not reach before. That allows us to perform better underwriting, offering lower interest rates to existing borrowers and approving applicants we previously had to turn away. On top of that, our technology enables instant automated credit approvals, allowing drivers in Mexico to pay their down payment and receive their vehicle in under 24 hours,” Eterovic noted.

Targeting the Core of Latin America's Two-Wheeler Demand

While Galgo began operations in Chile, its growth trajectory quickly shifted toward Latin America’s largest two-wheeler markets. Today, Mexico and Colombia account for more than 95% of Galgo’s total business volume.

"Mexico sells around 150,000 new motorcycles a month, in round numbers. Colombia sells 100,000, and Chile sells 2,000. Mexico sells in four or five days what Chile sells in a full year. That is why the core of Galgo sits in Mexico and Colombia, the two most relevant Spanish-speaking markets in Latin America," Eterovic said.

Combined annual demand across Mexico and Colombia approaches 3 million new units, with the market expanding at double-digit rates. Yet credit penetration for two-wheelers remains severely underdeveloped compared with the traditional automotive sector.

“If you look at auto financing 20 or 25 years ago, credit penetration was very similar to where motorcycles are today. We are working to bring motorcycle credit penetration up significantly. Increasing access directly expands the total addressable market,” said Aaron Castro, country manager for Mexico, Galgo.

While Galgo’s general consumer marketplace remains brand-agnostic, offering financing models across Honda, Yamaha, TVS, and various Asian manufacturers, the tailored product line developed for Uber will focus strictly on work vehicles designed for commercial durability and low operating costs.

“For the specific solution being built for platform drivers and couriers, it is focused on work motorcycles. We are selecting vehicles optimized for fuel efficiency, low maintenance costs, and safety—likely concentrating on engine displacements between 100cc and 250cc,” Castro explained.

Castro added that expanding credit access creates a positive ripple effect across local economies, where small businesses dominate the retail landscape. “Around 90% of motorcycle dealerships across the region are SMEs. More financing means more unit sales for dealers, which translates into local jobs in sales, maintenance, and spare parts.”

Profitable Growth in a Tight Capital Environment

Uber’s investment comes at a time of broader capital-market tightening for technology startups, signaling strong institutional backing for models that demonstrate proven unit economics over cash burn.

Galgo is currently growing at 50% year over year and achieved net-income breakeven in the most recent quarter. The company is generating more than US$100 million in annualized revenue, backed by balance-sheet performance that has allowed it to secure institutional bank debt to fund its loan portfolio.

“This is a solid business. Our credit performance and the strength of our balance sheet have enabled us to access bank and institutional financing for our portfolio, significantly reducing our cost of funds,” said Diego Fleischmann, co-founder and chairman, Galgo.

For Uber, the partnership represents a long-term strategic play to secure two-wheeled supply density across key growth cities.

The 2030 Roadmap: Scaling 5x Without Sacrificing Risk

Galgo’s long-term strategic plan targets a fivefold increase in top-line revenue, scaling from US$100 million to US$500 million by 2030 while maintaining positive net margins and double-digit growth.

Galgo's Core Strategic Priorities:

1. Regional Execution & Product Rollout: Successfully launch the Uber co-branded financing product in Mexico before exporting the operational model to Chile, Colombia, and a newly selected fourth Latin American country in 2027.
2. Algorithmic Underwriting Refinement: Continually iterate AI-driven credit scoring models using alternative platform data to expand approval rates while keeping default rates tightly controlled.
3. Disciplined Scale: Maintain a >50% annual revenue growth trajectory while protecting quarterly net profitability and balance sheet stability.

"In many startups, the only way to achieve rapid growth is by sacrificing short-term profitability. We have worked hard to build a profitable company, and we are not willing to sacrifice profitability to reach our 5x growth target. It is about balancing top-line growth, continuous technology investment, and bottom-line health," Eterovic said.

Castro emphasized that disciplined risk management remains the foundation of their regional expansion strategy.

"We need to maintain 50% annual growth while managing credit risk with discipline. Whether financing a courier in a major metropolis or a worker in a coastal town, our technology allows us to safely test new risk segments, expanding financial inclusion while ensuring loan terms remain sustainable for the borrower," Castro said.