Narayan AmmachchiE-commerce giant Mercado Libre is set to significantly expand its presence in Mexico, committing an ambitious $3.4 billion investment. According to local media reports, the company plans to add more than 10,000 employees by the end of this year.
This investment marks a 38% increase from last year’s allocation and focuses on enhancing the company’s logistics infrastructure and digital payment services. Mexico, Mercado Libre’s second-largest market, has already seen over $35 billion in investments from the company over the past five years.
The online retail leader is also gearing up to integrate advanced artificial intelligence solutions to improve credit risk assessment and bolster cybersecurity measures against financial fraud. Industry analysts note that Mercado Libre aims to accelerate delivery times by implementing automated warehouses and advanced logistics systems.
The announcement was made by David Geisen, Mercado Libre’s country manager, in the presence of President Claudia Sheinbaum. Notably, the Sheinbaum administration recently imposed a 19% tax on goods imported via courier services — a policy move that has dealt a severe blow to Chinese e-commerce competitors such as Temu and Shein.
Despite looming tariff concerns from the United States, foreign investment in Mexico has been steadily rising in recent months.
Home Depot has committed $1.3 billion over the next three years to expand its operations, while Netflix has announced plans to invest $1 billion in digital content production over the next four years. Spanish banking giant Santander is also injecting over $2 billion into its Mexican operations.
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