Narayan AmmachchiUS online retail giant Amazon has invested $25 million in Rappi, one of Latin America’s fastest-growing last-mile delivery startups—a move widely seen as a strategic challenge to MercadoLibre, the region’s dominant e-commerce player.
Under the terms of the deal, Amazon has the option to acquire up to 12% of Rappi’s equity.
The partnership allows Amazon to integrate its retail and technology infrastructure with Rappi’s logistics network, significantly boosting its competitiveness across Latin America’s rapidly expanding online retail market.
Amazon and Rappi already share a commercial relationship. Rappi uses Amazon Web Services, and in Mexico, Prime members receive free delivery for a year via Rappi.
For Amazon, the investment strengthens its logistics capabilities and opens new delivery channels in key markets. For Rappi, the deal brings validation from one of the world’s largest digital retailers while providing access to Amazon’s cloud computing services and global supply chain expertise.
Founded in 2015, Rappi operates in countries spanning Mexico to Chile. Beyond delivery, Rappi has diversified into restaurant services and financial products, offering a digital wallet, credit cards, and savings accounts across multiple markets.
Backed by SoftBank and Sequoia Capital, Rappi quickly became a unicorn and is reportedly preparing for a New York Stock Exchange listing by the end of this year. Earlier in 2025, it secured a $100 million loan from Santander Bank and Kirkoswald Capital Partners to fuel its growth plans.
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