In A Move That Aims Directly At The Leadership Of Mercado Livre, The E-Commerce Giant Joins Forces With The Delivery Platform To Dominate Logistics In Latin America.
The Amazon acquired a stake in the Colombian delivery company Rappi. The strategic partnership aims to combine the robust infrastructure of the North American giant with the logistical reach of one of the most well-known startups in Latin America. This move is a crucial step for Amazon to strengthen its fast delivery operations.
A Strategic Alliance To Challenge Mercado Livre
Access to Rappi’s logistics network could help Amazon compete with the regional heavyweight of e-commerce, the Mercado Livre. For the Colombian startup, the partnership represents a strong endorsement from the largest online retailer in North America. Additionally, it opens opportunities for Rappi to leverage Amazon’s logistics and cloud computing networks.
The Financial Details Of The Deal With Rappi
The initial investment by Amazon is 25 million dollars, made through a convertible note. Although the amount is modest for the Seattle giant, the deal guarantees a strategic right. Amazon will be able to purchase up to 12% of Rappi through warrants, provided certain targets are met. The details of the agreement are confidential and may change in the future. Spokespeople for both companies did not comment on the transaction.
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Rappi: From Fast Delivery To Financial Services
Founded in 2015, Rappi has become ubiquitous in various countries, from Mexico to Chile. Its service “Turbo” stands out for its promise to deliver products, from wine to toothpaste, in under 10 minutes. The company has also expanded its operations and entered the financial sector. Today, Rappi offers a digital wallet and has regulatory approval in countries like Colombia to issue credit cards and offer savings accounts.
Heavyweight Investors And The Future Of Rappi
Rappi has the support of notable investors, such as SoftBank Group, Sequoia Capital, and T. Rowe Price. Simón Borrero, co-founder and CEO, has mentioned that the company could go public in 2025. Recently, Bloomberg reported that Rappi secured a loan of 100 million dollars.
Previous Ties Between Amazon And Rappi
The investment by Amazon reinforces commercial ties that already existed between the two companies. Rappi is a customer of Amazon Web Services (AWS), the cloud computing service. In Mexico, Amazon already offers members of its Prime program one year of free shipping on orders placed through Rappi’s platform.

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