Latin American lockdowns speed Mercado Libre's growth
Significance Latin America’s leading e-commerce platform has emerged as one of the winners in the current regional business environment, marked by the COVID-19 pandemic. While retailers across the region have struggled to cope with lockdowns, Mercado Libre saw its user numbers increase by 45.2% year-on-year in the second quarter, to 51.5 million. Mercado Libre has been able to adapt its business model to Latin America’s unique market features, which include excessive regulation, chronic infrastructure problems and poor enforcement of the rule of law. Impacts Mercado Libre’s expansion prospects in Latin America may prove strongest outside its home market, Argentina. The shift towards online retail in the region will continue as fintech expands among people not included in traditional financial systems. Regulatory difficulties and trade union pushback will continue to raise challenges in some markets.