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Weekly Roundups

Amazon to Invest US$100 Million in Mexico to Strengthen Logistics

By Andrea Villar | Thu, 10/22/2020 - 08:00

Amazon will invest US$100 million in Mexico to strengthen its logistics and delivery times in the country. The investment will be outside the Mexico City metropolitan area and will be used for the creation of new distribution centers in Monterrey and in the surroundings of Guadalajara, as well as a support center in the State of Mexico. “The construction of a solid infrastructure network allows the company to stay closer than ever to clients and thanks to that, it is possible to offer fast deliveries,” the e-commerce giant said in a statement.

According to Amazon, the new facility will generate 1,500 direct and indirect jobs. With these new centers, the technology adds up to 27 stations in total throughout the country. In response to the news, Jalisco Governor Enrique Alfaro said that the new warehouse will help more SMEs to send their products faster and at lower costs.

In the 2020 edition of Amazon Prime Day, SMEs in Amazon shops worldwide were the big winners, achieving sales 60 percent higher than the previous year. The company led by Jeff Bezos reported that third-party sellers, most of them SMEs, exceeded US$3.5 billion in sales on Prime Day, which was even higher than Amazon's own products. Last week, Amazon said it was preparing a US$18 billion investment to help SMEs succeed in its marketplace, including financing a promotion that helped generate more than US$900 million in sales in the previous weeks.

More news below:

  • The US Justice Department (DoJ) and 11 states filed an antitrust suit on Tuesday against Alphabet's Google for allegedly violating the law because of the way it treated rivals in its internet search and advertising business, seeking to disadvantage them to maintain the dominant position of its own search engine and thus sell more ads.

         

  • Volumes of data make analyses difficult. ECON’s solutions help to collect the data and even predict and correct failures in a supply chain using AI. “The volume of data that is being stored is too big to be analyzed correctly. No matter how hard a company tries to analyze it to obtain insights, the immense world of data will only allow us to analyze a tiny part of it. This brought us to consider the next step needed to solve the problem,” told MBN Alex Álvarez Salaverria, General Director of ECON Tech, in an interview this week. Read the full story here.

  • Ant Group’s IPO is imminent. Alibaba's financial arm cleared the last regulatory filter yesterday and is expected to proceed with its long-awaited US$35 billion IPO in Shanghai and Hong Kong sooner than expected. 

  • Transactions in Mercado Libre’s financial arm, Mercado Pago, more than doubled in 2Q20. Its CEO, Osvaldo Giménez, sees the Chinese company Alibaba and its payments subsidiary Ant Group as a role model. "Many of the things we did were inspired by how they have worked in China," he told Reuters.

        

  • Jump bikes are back in Mexico City but are no longer under Uber’s control. After merging its Jump business with Lime back in May, Bicitekas, a group that has rescued hundreds of bicycles from destruction and that advocates for cycle towns, will deploy 1,600 rescued Jump bikes for public use. "It's good that they did. In other parts of the world, Uber sent them (the bikes) to the dump," said the specialized media The Verge.

  • Klar, a new challenger bank based in Mexico City, closed US$15 million in Series A funding led by Prosus Ventures, the company announced in a statement. The funds will be put to use to grow Klar’s engineering capabilities in both its Berlin and Mexico hubs to expand the company’s product suite.

  • Nokia was selected by NASA to build the first mobile network on the moon, the Finnish company said on Monday. The network is part of the US space agency's plans for an eventual human settlement on the moon. NASA aims to send humans back to the moon by 2024 and begin work on a long-term presence with its Artemis program.

        

  • PayPal will allow its customers to have bitcoin and other virtual currencies in their digital wallets, in addition to allowing the use of these crypto-currencies in the 26 million shops in its network. The company hopes this step will encourage the global use of virtual currencies, PayPal CEO Dan Schulman said in an interview with Reuters.

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Andrea Villar Andrea Villar Journalist and Industry Analyst