Please ensure Javascript is enabled for purposes of website accessibility

MercadoLibre to Double Its Workforce and Triple Spending in Mexico to Fuel Growth

By Danny Vena - Updated Apr 6, 2021 at 2:43PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The e-commerce giant has big plans south of the border.

MercadoLibre (MELI 8.36%) was already the e-commerce leader in Latin America, before its growth was accelerated by the pandemic. The company isn't letting up at all and has big plans for the future.

The e-commerce and digital payments powerhouse plans to double its workforce over the coming year, increasing its employee base to 32,000, up from 15,500 to close out 2020. Nearly 11,000 of the new staff will support its rapidly expanding fulfillment and delivery network, Mercado Envios, in a page taken directly out of the Amazon (AMZN 4.03%) playbook. 

Man on laptop smiling.

Image source: Getty Images.

That's not all. Mexico was one of the company's largest growth markets last year, and MercadoLibre plans to spend heavily in the country to spur growth. The company plans to invest roughly $1.1 billion in Mexico in 2021, more than it spent there over the past four years combined, and nearly triple the $420 million it spent there in 2020. 

MercadoLibre will invest heavily to increase its warehouse space, double the capacity of its inventory storage, and expand its logistics network. Combined, the moves will essentially double its fulfillment operations in the country. The company also plans to increase its fintech services and consumer credit availability in Mexico. The moves will combine to create an estimated 4,700 new jobs.

2020 was a breakout year for MercadoLibre. The company was well positioned for the lockdowns that resulted from the global pandemic, which helped spur significant growth in both digital payments and e-commerce. In the fourth quarter, revenue grew 149% year over year, but Mexico's contribution grew even faster, up 155%. At the same time, the number of items sold in Mexico surpassed MercadoLibre's home market of Argentina, as the company consistently ramped up its logistics and delivery operations in the country.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Mercadolibre, Inc. Stock Quote
Mercadolibre, Inc.
$783.44 (8.36%) $60.44, Inc. Stock Quote, Inc.
$2,221.55 (4.03%) $86.05

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.