Apps for ride-sharing and food delivery are fueling the expansion of the gig economy in Latin America, which had more than 51 million side hustle workers in 2021. Now startups such as Mexico’s OCN, which offers car rentals to gig workers, are targeting that burgeoning workforce.
OCN, formerly known as One Car Now, landed $86 million in a Series A round of equity and debt led by early-stage investors Caravela Capital, Collide Capital and Great North Ventures. New York’s i80 Group provided the debt portion.
OCN launched in 2021 with middle- and long-term car rental services that don’t require down payments, and include associated costs and fees for insurance, registration and maintenance. It has so far teamed up with cab-hailing companies like Mexico’s Cabify and Beijing-headquartered Didi to help drivers registered on those apps gain access to newer vehicles.
“Providing an all-inclusive rental model for ride-share drivers is crucial for economic growth, as it empowers drivers to achieve financial stability and enhances mobility solutions in a rapidly expanding market,” said Ryan Weber, a managing partner at Great North Ventures. OCN will use its funding to expand into Brazil and further into the US (it already operates in South Florida).
Gig economy fintech
Venture deals overall in Latin America are rebounding after hitting a multi-year low, but impact investments are rising. Assets allocated to impact in the region have grown at an annualized rate of 21% over the last five years, second in emerging markets only to East Asia, according to the Global Impact Investing Network.
(See, “These impact investors are finding opportunities and doing deals in Latin America (videos)“
Mexican startups including Odetta and Kavak offer marketplaces to buy and sell cars, partnering with financial institutions for auto loans. OCN distinguishes itself by its subscription model specifically tailored for gig workers. It doesn’t offer a rent-to-own option.
