Mercado Libre Announced US$1.48 billion Investment in MexicoBy Antonio Gozain | Tue, 03/01/2022 - 11:10
E-commerce leader Mercado Libre will invest US$1.48 billion in 2022 to strengthen its logistics network in Mexico, said in a press conference David Geisen, Country Manager and Vice President Marketplace Mexico, Mercado Libre.
Between 2017 and 2021, Mercado Libre invested US$2.2 billion in Mexico: US$100 million in 2017, US$275 million in 2018, US$300 million in 2019, US$420 million in 2020 and US$1.1 billion in 2021. This year’s bet represents 67 percent of the total investment made during the past five years.
“We are looking for growth in the country and the (US$1.475 billion) investment is in line with this. Mexico and Brazil are our main markets and will continue to be in 2022. We remain 100 percent committed to Latin America’s economic and financial development”, said Geisen.
The resources will be used to strengthen Mercado Libre’s logistics network, which now offers next-day deliveries in Puebla, Toluca and Pachuca in addition to Mexico City, Guadalajara and Monterrey. The company will also continue developing its fashion and supermarket categories.
Furthermore, Mercado Libre will continue innovating its digital platform, broaden its digital account services and strengthen the payment solutions it offers, said Geisen. The company’s net income in Mexico during 2021 grew by 96 percent, the highest in the regions it operates. Sales grew by 33 percent, putting the country above the Latin American average, he added.
The company’s presence in Mexico has become essential for thousands of families. When the COVID-19 pandemic hit the country, the closure of businesses left thousands without steady income. Mercado Libre became the main source of income for 288,000 Mexican families and 900,000 total families across Latin America during 2020, according to Euromonitor International.
Inflation Will Continue
Inflationary pressures will continue affecting Mexico and the world, projected Geisen. “My personal expectation is that this inflation is going to accompany us for some more time and is not going to reduce as fast as it grew.”
Inflation causes higher prices for the final consumer, who becomes more analytical in terms of how to spend money. This gives e-commerce an edge due to the diverse options it offers to users, said Geisen.
Interannual inflation in Mexico reached 7.22 percent during February, according to INEGI, impacting the price of food, electronic devices and auto parts.
Mexico City’s Public Transport Card to Be Rechargeable through Mercado Pago
The Integrated Mobility Card (MI), used for contactless payment in Mexico City’s public transportation, will be rechargeable through Mercado Pago’s mobile app starting on March 2, 2022, saving time for millions of users, reported MBN. Users will be able to recharge MI cards through their smartphones 24 hours a day thanks to Mercado Pago’s integrated NFC technology.