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April 30, 20 - 3:16 pm - LABS

Mercado Libre to slash investments despite growth during pandemic

The e-commerce giant Mercado Libre won’t complete its investment plan this year, according to Terra. In spite of growth in revenues in recent weeks, when the economy in general practically stopped, Argentina-based Mercado Libre may not invest the $730M it had announced for Brazil in 2020, according to the company’s executive vice president, Stelleo Tolda.

According to him, resources that would be used to promote the group’s digital wallet, Mercado Pago, are threatened. Tolda points out that the company’s digital portfolio and POS continue to grow, but at a slower pace than in previous months. According to him, however, payments with QR Code, technology launched in September 2018 and one of the biggest bets in Mercado Pago, are suffering more – the tool can only be used in purchases made physically.

Resources that would be used to promote the group’s digital wallet, Mercado Pago, are threatened. Photo: Shutterstock

On the other hand, between February 24th and March 24th, the number of orders for food and cleaning products made on the website grew 14% and the average ticket for these purchases, 22%, according to Itaú‘s report.

The growth on e-commerce during the pandemic has made the company accelerate the hiring of employees in the area of ​​logistics, reaching a number expected to be reached only in November 2020.