Business

Amazon announces $100 million logistics investment in Mexico

It will be invested in opening new warehouses in Mexico, including its first shipping centers outside the populous capital area

FILE PHOTO: Amazon packages are seen at the new Amazon warehouse during its opening announcement on the outskirts of Mexico City, Mexico July 30, 2019. REUTERS/Carlos Jasso
  • Amazon in total now runs five fulfillment centers;
  • Amazon is also striving to make inroads in Brazil.

Amazon said on Thursday it has invested $100 million in opening new warehouses in Mexico, including its first shipping centers outside the populous capital area, in a bid to offer faster deliveries.

The new sites include two so-called fulfillment centers – one near the northern city of Monterrey and another near the central city of Guadalajara – as well as a support building in the State of Mexico, just outside Mexico City.

READ ALSO: EU antitrust regulators may narrow Amazon investigation – sources

Amazon also opened 12 delivery stations, bringing its total to 27 across the country, it said.

“The construction of a solid infrastructure network allows the company to stay closer than ever to clients, and thanks to that, it’s possible to offer fast deliveries,” Amazon said in a statement.

Monterrey and Guadalajara are the two biggest metropolitan zones of the country after the sprawling Mexico City area.

READ ALSO: Amazon bets on Prime Day in Latin America to battle local rivals

The new facilities represent 69,000 square meters (742,710 sq ft) altogether and create 1,500 direct and indirect jobs, Amazon said.

Amazon in total now runs five fulfillment centers, two support buildings and two classification centers in Mexico, where it launched its marketplace in 2015.

Enrique Alfaro, the governor of Jalisco state that is home to Guadalajara, said the new local warehouse would help more small and medium sized businesses ship their products faster and at lower costs.

READ ALSO: Startups Legal Framework Bill recognizes the importance of the sector in Brazil but leaves tax and labor issues behind

Amazon is also striving to make inroads in Brazil, where it recently opened its fifth and biggest fulfillment center in the country, with 100,000 square meters (1,076,391 sq ft).

In both countries, which are the biggest economies in Latin America, Amazon is vying with local rivals for shopper loyalty, despite its ranking as the world’s biggest online retailer.

Get the best insights about Latin America market in your inbox