Mercado Libre facts for kids
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Former headquarters in Saavedra, Buenos Aires, July 2021
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Native name
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| Traded as |
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| Industry | E-commerce |
| Founded | August 2, 1999 |
| Founder | Marcos Galperin |
| Headquarters |
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Uruguay
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Area served
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Key people
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| Brands |
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| Services | Online marketplace and e-commerce payment system |
| Revenue |  US$14.5 billion (2023) |
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Operating income
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US$1.82 billion (2023) |
| US$987 million (2023) |
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| Total assets | US$17.6 billion (2023) |
| Total equity | US$3.07 billion (2023) |
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Number of employees
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58,313 (2023) |
MercadoLibre, Inc. is a big company from Argentina. Its name means "free market" in Spanish. In Portuguese, it's called Mercado Livre. The company's main office is in Montevideo, Uruguay. It also has a legal base in Delaware, United States.
MercadoLibre runs huge online shopping websites. These websites are like digital malls where people can buy and sell things. They also host online auctions. As of 2016, MercadoLibre had over 174 million users in Latin America. This made it the most popular online shopping site in that region. In 2023, Time magazine named MercadoLibre one of the 100 most important companies in the world.
MercadoLibre operates in many countries. These include Argentina, Brazil, Chile, Colombia, Mexico, and Uruguay.
Contents
Company History
MercadoLibre started in 1999 in Argentina. The founder and CEO, Marcos Galperin, created the company. He was a student at Stanford University at the time. He got early money from John Muse, a well-known businessman. Other big companies also helped fund MercadoLibre.
Early Growth
In 2001, another online auction company, eBay, bought a part of MercadoLibre. eBay sold its share in 2016. However, both companies still work together. They help eBay sellers reach customers in Latin America. In 2017, eBay even opened its first store on MercadoLibre's website in Chile.
MercadoLibre also bought other companies. In 2001, it acquired iBazar Como. This was eBay's Brazilian branch. In 2006, MercadoLibre expanded into Costa Rica, Panama, and the Dominican Republic.
Going Public and More Acquisitions
In August 2007, MercadoLibre made a big step. It became the first technology company from Latin America to be listed on the NASDAQ stock exchange. Its stock symbol is MELI.
The company continued to grow by buying competitors. In 2008, it bought DeRemate's operations. It also acquired Classified Media Group (CMG). CMG owned popular online portals like tucarro.com for cars and tuinmueble.com for real estate.
Technology and Investment
In 2011, MercadoLibre changed its technology platform. It moved to an open-source system. This allowed other developers to create new tools and services for the platform.
In 2013, MercadoLibre started the MeLi Commerce Fund. This fund invests in new tech companies. These companies create software that works with MercadoLibre's systems. By 2016, the fund had invested a lot of money in many companies.
MercadoLibre also bought more classified ad websites. In 2014, it acquired Portal Inmobiliario in Chile. In 2015, it bought Metroscúbicos.com from Mexico.
Expanding Offices and Operations
In 2016, MercadoLibre moved its main office in Brazil. The new office, called Melicidade, is very large. It has a cafeteria, gym, and many meeting rooms.
The company also opened new software centers. One opened in Córdoba, Argentina, in 2016. Another opened in Bogotá, Colombia, in October 2016. This was MercadoLibre's fourth customer service center in Latin America.
In 2019, MercadoLibre opened its first large distribution centers. These are in Argentina, Brazil, and Mexico. They help deliver products faster. In 2020, more distribution centers opened in Chile and Colombia. MercadoLibre also announced a new software center in Colombia that year. In 2021, the company announced a big investment in its Brazilian operations.
How MercadoLibre Works
MercadoLibre has five main parts that help it run. These are like different departments of the company.
- MarketPlace: This is the main shopping website. It connects people who want to sell things with people who want to buy them. Buyers can bid on items or buy them at a set price. After payment, items are delivered. Users can also give feedback on their experience. Many official stores and brands sell their products on MercadoLibre's MarketPlace.
- Mercado Pago: This is MercadoLibre's secure payment system. It allows people to pay for things they buy online. In 2016, MercadoPago handled many millions of transactions. A mobile app for MercadoPago was released in 2014. It lets people use their smartphones or tablets to process payments. This system expanded to Colombia in 2016.
- Mercado Crédito: This part of the company offers credit lines. It helps both buyers and sellers get loans. The interest rates for these loans depend on the borrower's profile.
- Mercado Publicado: This is the advertising part of MercadoLibre. It helps sellers promote their products on the platform.
- Mercado Shops: This tool helps small and medium-sized businesses. It allows them to create their own online stores on their websites. These stores can also connect with social media sites.
MercadoLibre also has a special section for real estate and cars. It's called Mercado Libre Classificados. Real estate agents and car dealers pay a monthly fee to list properties and vehicles there.
See also
In Spanish: Mercado Libre para niños
