Investing $420 million! Meituan-Dianping is betting on the fourth largest market in Latin America!
Meituan-Dianping invests $420 million in the fourth largest market in Latin America
BusinessDialogue has learned that despite losses and layoffs in the first quarter, Mercado Libre plans to expand massively in Chile. The company recently announced that it will invest $420 million in Chile this year and increase its workforce by 30%.
Alan Meyer, general manager of Mercado Libre in Chile, Peru and Ecuador, explained, “We have raised the industry standard… so that retailers have to follow us.”
According to reports, Mercado Libre’s business in Chile has grown tenfold in the past three years. Chile is now Mercado Libre’s fourth largest market, after Brazil, Mexico, and Argentina. Today, one out of every three e-commerce packages in Chile comes from Mercado Libre.
The Mercado Libre Chile site receives more than 100 million visits per month, which is 25 times the traffic of Chile’s largest shopping center, with weekly shipments exceeding one million.
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Alan Meyer pointed out, “Nearly 90% of Chilean households shop on Mercado Libre. Currently, about 14 million Chileans have installed our application on their mobile phones, which will bring huge growth potential to Mercado Libre.”
It is this potential that is driving Mercado Libre’s expansion in Chile. “Although online sales are declining, we continue to move forward. We are growing at a double-digit rate, which is very exciting. This year we will invest more than $420 million in Chile, setting a new historical high.”
One important aspect of this investment is to continue to strengthen logistics capabilities, expand geographic coverage, and shorten delivery times. Today, more than 90% of Mercado Libre’s orders in Chile are delivered within 48 hours, and more than 50% are delivered within 24 hours. The company’s goal is to expand logistics services throughout Chile, including remote areas such as Arica.
The company currently has 2,000 employees in Chile, and plans to hire 600 new employees this year, mainly in logistics and technology positions. These employees will join different business departments: Mercado Libre, Mercado Pago, or Portalinmobiliario.com.
Mercado Libre has significant investments in financing, with a focus on continuing to provide interest-free installment payment services and offering loans to sellers who wish to sell products on its platform and need to strengthen their online business. Mercado Libre offers 35 million products from 35,000 sellers, which account for 80% of the platform’s sales.
BusinessDialogue understands that e-commerce currently accounts for about 15% of the retail market in Chile. Industry analyst Alan Meyer pointed out that although Chile’s retail industry has been early in laying out e-commerce sales, the country’s e-commerce penetration rate is still low and still has great growth potential.
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