Mercado Libre Expands Logistics in Argentina and Faces Volatility in Brazil

Mercado Libre has strengthened its operations in Argentina by inaugurating a new logistics facility and launching an air shipping network in the province of Mendoza. The expansion is part of a broader corporate investment plan aimed at improving digital commerce infrastructure and regional federalization across the country.

The company invested a total of $9.7 million in the Mendoza region. This funding included $8 million allocated for a last-mile distribution center in Luján de Cuyo, developed in partnership with a local real estate developer, and $1.7 million designated for new corporate offices located in the Workplace Palmares tower.

The new facility spans over 11,000 square meters, representing more than two and a half times the size of the company's previous operations in Godoy Cruz. Designed to process up to 96,000 packages daily, the center is expected to create 1,050 direct and indirect jobs, while the administrative offices support roughly 200 employees under a hybrid work model.

As part of this regional growth, Mendoza has been incorporated into Mercado Libre's domestic air shipping network. The service utilizes five weekly frequencies via the cargo holds of commercial flights operated by Aerolíneas Argentinas, replicating similar logistics models previously established in Brazil and Mexico.

“We continue investing in Mendoza because we believe in the potential of e-commerce growth and the importance of better connecting the different provinces of the country,” stated Juan Martín de la Serna, president of Mercado Libre Argentina. Adrián Ecker, the company's country manager, added that the new air shipments and expanded last-mile center allow products to reach local buyers faster while helping regional small and medium enterprises reach the rest of the nation.

Meanwhile, international financial markets saw a sharp drop in the company's stock value amid broader economic shifts in South America. Following the recent presidential election in Brazil—where Luiz Inácio Lula da Silva won the runoff against Senator Flavio Bolsonaro—Brazilian assets faced intense selling pressure and currency depreciation.

Shares of Mercado Libre fell by 13.27 percent in pre-market trading in New York, reaching $1,558. Because Brazil serves as the company's largest market, accounting for over 52 percent of its net and financial revenues, shifts in local consumer demand and currency exchange rates remain critical factors for its financial performance.