OCN invests US $150M to make car rentals easier for gig workers in Mexico  

OCN, a fast-growing Mexican start-up that provides rental cars to gig workers, volition put US $150 cardinal implicit 18 months to grow services successful Mexico.

The company, formerly known arsenic One Car Now, plans to grow car entree for ride-hailing drivers successful 5 large cities: Mexico City, Monterrey, Guadalajara, Tijuana and Querétaro.

With astir of it app-enabled, gig enactment has been progressively common. But there’s nary getting astir the information that astir of the clip it requires a vehicle. (Depositphotos)

Toward that end, OCN plans to triple its existent fleet of vehicles from 5,000 to 15,000 vehicles, and expects to adhd astatine slightest 30 caller employees to its unit of 120. 

Given their nontraditional employment status, gig workers often deficiency entree to accepted lines of credit.

OCN seeks to code this contented by utilizing risk-assessment investigation to lend to customers who are “often excluded from oregon overlooked by the ceremonial fiscal strategy successful Latin America and the United States.” 

The institution offers drivers a week-to-week outgo statement that includes insurance, maintenance, registration and roadside assistance. Drivers whitethorn acquisition the car aft 36 months.

The steadfast estimates the fig of gig drivers successful Mexico who tin entree cars nether its strategy to beryllium successful the thousands.

The concern volition besides beryllium utilized to thrust planetary expansion, peculiarly successful the U.S. and Brazil, arsenic the institution seeks to execute a planetary presence.

Some of the cars advertised connected OCN’s website amusement rental costs of astir 4,000 pesos (US $215) per week. (OCN)

Additionally, the steadfast plans to grow beyond car rentals by introducing further fiscal products.

Founded successful 2022 and based successful Mexico City, the company says its mission is based connected the content that “transforming the mode radical get a caller car tin thrust economical and technological development.”

It defines its extremity arsenic making “a affirmative quality by committing to ethical and sustainable practices that volition assistance america amended people’s mobility experience.”

OCN announced its concern pursuing the closing of a Series B circular successful February, the magnitude of which was not disclosed. Series B is the 2nd circular of task superior backing that a startup typically raises aft successfully completing a Series A round.

Fintech Futures reported that successful July 2024 OCN secured a US $86 cardinal Series A backing circular comprising a premix of equity and debt.

These transactions were completed astatine a clip erstwhile task superior concern successful Latin America has fallen to its lowest level successful astir 7 years, according to PitchBook.

The contraction successful task superior backing is partially owed to planetary economical uncertainty and the withdrawal of U.S. funds, but fintech startups similar OCN that are targeting the gig system successful emerging markets are carving retired unsocial opportunities for scalable growth, according to AInvest.

AInvest said OCN’s strategy suggests it is well-positioned to thrive successful this caller world arsenic it offers a compelling thesis: addressing underserved markets with technology-driven, capital-efficient solutions. 

With reports from El Financiero, Bloomberg, AInvest and Fintech Futures