(Image: Reuters/Mercado Livre Disclosure)
O Free Market (MELI34) announces the expansion of its logistics operations in Brazil. According to the e-commerce company, there will be a growth of over 100% in the number of Fulfillment Distribution Centers (CDS) by the end of 2025.
The goal is to go from 10 CDS operations to 21 by expanding coverage to other regions of the country, in addition to the Southeast, reaching closer to the Northeast, Central-West and South regions of the country.
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There are currently five centers in São Paulo, one in Rio de Janeiro, one in Bahia, two in Minas Gerais and one in Santa Catarina. In addition to four new centers in SP, Pernambuco, Rio Grande do Sul, Distrito Federal, Ceara and Paraná will also receive distribution units by the end of next year.
“It’s a bet on Brazil and e-commerce,” said Fernando Yunes, senior vice president and leader of ML during the Mercado Livre Experience 2024 event. “All this logistical expansion is foreseen in the investments announced at the beginning of 2024,” he adds.
At the beginning of the year, an investment of R$23 billion in Brazil was announced and, according to the VP, the company plans to increase its investment in the country even further next year, but he says that they do not yet have a concrete estimate. It is worth noting that Brazil currently represents around 53% of Mercado Livre's total sales.
Another announcement made during the event, which also impacts distribution, was the increase in the air fleet available for deliveries in the country until the end of 2025. Two new cargo aircraft will be added, in partnership with GOLLOGtotaling nine dedicated to the regional expansion strategy.
Furthermore, already this year, the Free Market announced the optimization of routes that are already being operated and doubled the capacity of its Air Hub in Guarulhos, increasing potential.
Still aiming to increase logistics capacity, they reported that around 330 autonomous robots already help in logistics warehouses and are responsible for reducing order processing by 20%.