Question · Q3 2025
Jeffrey Elliott asked about the competitive environment in Brazilian e-commerce, specifically whether Mercado Libre's competitors are behaving rationally and if there are any signs of irrational competition in the market.
Answer
Incoming CEO Ariel Szarfsztejn acknowledged Brazil as an intensely competitive but attractive market with low e-commerce penetration. He highlighted Mercado Libre's strong market leadership, tripling market share since 2014, driven by a formidable value proposition, record NPS, brand preference, retention, and conversion. He asserted confidence in competing successfully by focusing on the user, not competitors, and stated Mercado Libre's actions, like lowering free shipping thresholds, are rational and strengthen their competitive position. He cannot speak for competitors' rationality.