The Intrinsic Value Podcast - The Investor’s Podcast Network TIVP054: Mercado Libre: More than just "the Amazon of Latin America" w/ Daniel Mahncke & Shawn O’Malley
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Jan 12, 2026 Discover how Mercado Libre has transformed from an eBay-like marketplace to a powerhouse in e-commerce and fintech across Latin America. The hosts unravel its unique business model, highlighting the importance of its logistics network as a competitive moat. They also delve into the lucrative fintech arm, Mercado Pago, and explore the challenges posed by competitors like Amazon and Shopee. With insights on capital allocation, advertising strategies, and future growth prospects, the discussion paints a comprehensive picture of this dynamic market leader.
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Sustained High Growth In Underpenetrated Market
- Mercado Libre sustained >30% YoY revenue growth for 27 consecutive quarters, showing rare persistent expansion.
- E-commerce penetration in Latin America is ~14–15%, leaving large room for continued adoption and growth.
Three Interlocking Flywheels
- MELI combines marketplace, fintech (Mercado Pago), and logistics (Mercado Envios) into a reinforcing ecosystem.
- Each unit strengthens the others, creating multiple flywheels rather than a single product focus.
Logistics Turned E‑Commerce Into Habit
- Building logistics converted e-commerce from niche to habitual shopping by improving speed and reliability.
- Dense, owned fulfillment and last-mile capabilities become a durable barrier to entry in Latin America.