Mercado Libre is reinforced in the inflation scenario and does not analyze layoffs

Mercado Libre is reinforced in the inflation scenario and does not analyze layoffs

We have the right talent and we want to keep expanding it.โ€The CEO noted, though he stressed the need to “rethink priorities” in a scenario like the current one, in which the company lost nearly half of its valuation compared to 2021.

however, He did not rule out the implementation of adjustments by the supervision of “every profit and loss line”: “Every efficiency point that we can capture there has a very, very big impact.”

The e-commerce division aims to use the record revenues reported this year to fund investments. Despite the profitability of the implemented strategy, Mercado Libre strives to innovate in new areas: โ€œMercado Pago now allows you to buy, sell and store cryptocurrency in Brazil, and we are now expanding it to Mexico.โ€

Regarding the Argentina e-commerce scenario, Szarfsztejn noted that I don’t think there will be focus: “I think we are at the most intensely competitive moment in the tech world in Latin America with local Asian players trying to invest and take their share in the region.”

E-commerce as a percentage of retail in Latin America comes from very low numbersAsked about the current scenario of the sector in the region, he said, stressing that it is particularly low when compared to other parts of the world: โ€œIt’s number one in recent years. When you compare that to the numbers in United Statewhich was in 15-20%and in Asia between 30% and 40%“.

It is clear that the epidemic precipitated all of these processesNoting recent growth, he added, “There is nothing structural that does not allow us to imagine a future in which the Internet can resemble what is happening in the United States, Europe or Asia.”

Regarding the low market valuation of the company, he explained: โ€œThere are market valuations that exceed Mercado Libre. If you look at the relevant global players in the tech industry, neither in e-commerce nor in fintech, they all made reassessments.โ€

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Instead of obsessing over interpretation, We’re obsessed with keeping running And continue to build the foundations that will allow us to better serve our users.โ€

For Szarfsztejn, “In these times of high inflation the user becomes more price sensitive and MercadoLibre is a great platform to allow (the user) to compare And look for alternatives. This is a crane.”

But he doesn’t just see a benefit for users: “The same thing happens with sellers. They want to be able to reach more users and not just customers who pass by their stores. At a time like this, this whole network begins to gain more value, because we create options for one side and the other. “

We don’t think about cuts and brakes. These are things that happen in other markets, or in other companies. But we are very proud of the talent we possess and we have the ambition to continue growing this pool because in the end it is what will allow us to continue growing,โ€ he said, dismissing the possibility of making adjustments to the staff. Brazil It does not change your business plans.

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