Uber Bets Heavily on Two-Wheeled Loans in Latin America

Why Motorcycles Matter in Latin America

Cars are out of reach for most people in the region. Parot puts the number at 70% of the population who simply cannot afford one.

"Motorcycles are part of Latin American culture because they offer a practical solution for the 70% of the population that can't afford a car," Parot said. "A motorcycle is both a tool for work and an affordable form of transportation, with monthly payments that people can manage."

The math backs him up. Motorcycles make up a much larger share of vehicle sales in Latin America than in Europe or the U.S. Sales in South America, excluding Brazil, rose about 19% last year, with Colombia leading the charge.

The affordability of motorcycles makes them an essential asset for many workers in the region. With monthly payments that fit tighter budgets, they enable individuals to start earning income quickly. This is why Galgo's lending model has resonated, as it addresses a critical need for access to transportation that doubles as a means of production.

Galgo started eight years ago lending to Venezuelan migrants in Chile. Chile today accounts for only 2% of its business, but the company plans to keep operating there.

A Pivot That Paid Off

Galgo did not always focus on motorcycles. The company made a tough call to get where it is now.

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"We made the hardest decision in the company's history and shut down every business except motorcycles because we didn't have enough capital to do everything," Parot said. "If we wanted to go big in motorcycles, we had to go all in - and that meant opening Mexico and Colombia."

That focus helped Galgo become profitable within the last year.

The Uber deal will let Galgo spend more on technology, data, and artificial intelligence. Parot sees the loans as more than consumer credit. He views them as a way for people to raise their earnings.

"For 70% of the Latin American population, a car is prohibitively expensive," Parot said. "Our company solves a tangible social problem: People who can't work today are able to buy a motorcycle and start earning an income."

What Comes Next

That gives the ride-hailing giant a way to help its drivers get wheels while giving Galgo a steady stream of customers.

Galgo is not stopping at three countries. The company plans to launch in a fourth Latin American nation in the first quarter of 2027. Parot has his eye on a few specific markets.

"In Latin America, the biggest opportunities include Brazil, which is always a huge market, Guatemala, where motorcycle demand is particularly interesting, and Argentina, with challenges that go beyond motorcycles, but it's still a very attractive market," Parot said.

Galgo is also getting ready for another funding round in 2027.

The bottom line: For investors, this deal shows how ride-hailing money is moving beyond cars and into the vehicles that actually move people in emerging markets. When a company like Uber puts its weight behind motorcycle financing, it is a sign that two-wheeled transport is not a side market - it is the main event for a huge share of Latin America's workforce.

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