The founder who launched the ‘Amazon of Latin America’ from a parking garage has transformed retail in the region—and earned himself $7 billion

Mercado Libre also set itself apart by partnering with local companies to adapt to the logistical challenges of countries in the region. In Brazil, the largest market in Latin America, e-commerce companies struggled with deliveries, since homes there might not have addresses or may be in dangerous areas. Through logistics company Kangu, Mercado Libre connected sellers to local shops that served as delivery points. MercadoLibre acquired Kangu in 2021.

Mercado Libre has also benefited from “being a company of Latin America, from Latin America, and for Latin America,” says Matteo Ceurvels, principal Latin America analyst for eMarketer. Mercado Libre went as far as to change its name in Brazil to Mercado Livre, Portuguese for “free market.” Amazon, meanwhile, struggled to properly translate its website when it launched there. (Amazon didn’t return a request for comment.) In 2022, Mercado Libre accounted for 34% of online sales in Brazil—“nearly the same share as its two largest competitors combined”—according to Ceurvels.

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