Amazon Inaugurates Last-Mile Distribution Center in Mexico City
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Amazon Inaugurates Last-Mile Distribution Center in Mexico City

Photo by:   Christian Wiediger, Unsplash
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Fernando Mares By Fernando Mares | Journalist & Industry Analyst - Fri, 09/15/2023 - 13:56

E-commerce giant Amazon recently inaugurated a last-mile delivery center in Mexico City, which is also its largest in Latin America. The distribution center aligns with the company’s strategy to be closer to its shoppers. 

The new last-mile delivery center, inaugurated on Sep. 14, spans 30,000m² and aims to enhance Amazon's delivery services in one of the region's most populous cities, which boasts of about 22 million inhabitants. Diana Francés, Director of Last-Mile, Amazon Mexico, highlights that this facility's inauguration supplements Amazon's existing network of 45 centers, each serving distinct purposes and employing over 8,000 people directly and 32,000 indirectly. 

The company did not reveal how much it invested in the construction of the new facility or its workforce size, however, it mentioned that owing to its dimensions, it is the largest last-mile delivery center in all of Latin America. Francés points out that the new center, located in the Cuahutemoc municipality, will collaborate with 100 suppliers, using diverse vehicles to improve efficiency. "In this country, we support 18,000 local businesses, entrepreneurs and artisans who showcase their products on our online store. Ninety-nine percent of sellers are SMEs, generating over 57,000 jobs in 2022. Furthermore, 20% of SMEs have already expanded their sales to the US and Canada," says Francés. 

Since the beginning of its operations in Mexico in 2015, Amazon has invested over MX$52 billion (US$3 billion) competing with other leading companies such as the Argentina-based e-commerce platform Mercado Libre and the retail giant Walmart.

US Ambassador to Mexico Kent Salazar congratulated Amazon for creating jobs. "It is a day of celebration. The company's investments here underscore the importance of the relationship between our countries,” he adds.

Amazon's new center is only the latest investment in distribution centers in Mexico. Walmart, one of Amazon’s main competitors, recently inaugurated a distribution center in Mexicali, Baja, California, which represented a MX$986 million (US$57,800) investment. Walmart’s new distribution center will be able to process the entry and exit of nearly 5 million boxes per month to supply Bodega Aurrera, Mi Bodega Aurrera and Walmart Supercenter stores, thus meeting omnichannel purchase orders in Baja California and Sonora, reports Mordor Intelligence.

Photo by:   Christian Wiediger, Unsplash

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