Letter from the CEO

In 2019, we celebrate the first 20 years of Mercado Libre, a path that we forged with a challenging purpose: to democratize commerce and money.

The entrepreneurial DNA that drove us from a garage in Saavedra neighborhood, in Buenos Aires, remains in force and unalterable. That is the spirit that defines us: constant innovation in our ecosystem with a wholistic approach.

Our evolution over these two decades has made us part of the lives of millions of people in Latin America. Our multiplier effect in 18 countries of the region is immense: more than 600 thousand families make their livelihoods by operating in Mercado Libre. In 2019 more than 378.9 million products were sold on our platform and we reached a monthly average of 838 million transactions using Mercado Pago, 115% more than the previous year. Our Mercado Credito solution continues to grow, surpassing US$534 million in transactions in Mexico, Brazil and Argentina.

We continue to revolutionize the democratization of payments and the inclusion of small and medium-sized merchants in the financial system. In 2019, we hit a milestone of more than 2.9 million users who incorporated our Point payment-as-a-service solution to process electronic payments with debit and credit cards, when many of them previously did not have the means to do so.

We have also continued to scale what we believe is our most disruptive service: the electronic wallet. In Argentina, Brazil and Mexico we launched our investment fund. And, in every country where we operate, QR-code payments are a reality with 4.5 milion users in 2019. With these solutions, we seek to end the cash economy and include segments of the population that have historically been abandoned by the traditional financial system.

In regard to e-commerce, today we are committed to delivering our packages within 48 hours. To deliver on this promise, we are working to improve our logistics system and make it more efficient, opening our own storage centers in Argentina, Brazil and Mexico. As part of this ongoing effort, we opened our first distribution center in Argentina in 2019. It employs more than 600 young people. For many of them, this is their first formal job.

We aim to improve every day, not only taking into account the growth of our business, but also its environmental and social impact. Under this premise and within the framework of our 20 years in business, we launched the first permanent section of sustainable products. The goal is to provide entrepreneurs that generate positive impact with a channel that will give them scale to grow their business.

In this report, we share the progress of the commitments we have made, aware that we will continue to take risks and bet on our long-term impact, along with a team of more than 9700 employees in the region.

My thanks to everyone who forms part of Mercado Libre.

Marcos Galperin
CEO and President of Mercado Libre Inc.