Mercado Libre Expands Gig Economy for Latin America Deliveries

To tackle peak season logistics pressures, Mercado Libre is piloting Mercado Envíos Extra in Brazil and Mexico, integrating independent delivery drivers to enhance its logistics capabilities in Latin America. This model aims to improve delivery efficiency, reduce logistics costs, and provide flexible employment opportunities for individuals. This initiative offers a valuable reference for other cross-border e-commerce platforms seeking to optimize their logistics networks.
Mercado Libre Expands Gig Economy for Latin America Deliveries

As the year-end shopping season approaches, Latin American e-commerce giant Mercado Libre is preparing for a surge in orders by launching an innovative logistics solution. The company recently announced it will pilot a new program called Mercado Envíos Extra in Brazil and Mexico, integrating independent delivery drivers into its logistics network to address the perennial "last mile" challenge.

The Independent Driver Model: Mercado Libre's New Logistics Engine

Mercado Envíos Extra represents a technological solution that incorporates freelance couriers into Mercado Libre's delivery system. Through this platform, individuals with private vehicles can flexibly transport packages during their spare time to earn supplemental income. This model not only expands Mercado Libre's delivery capacity but also creates flexible employment opportunities.

The application, developed by Mercado Libre's IT and product teams, has already begun trials in Chile's metropolitan areas. The company plans to expand the program to additional Chilean cities including La Serena, Viña del Mar, Rancagua, Concepción, Los Ángeles, Temuco, and Chillán.

"We're proud to offer users premium, fast delivery service through this initiative," said Máximo Correa, Mercado Libre's Transportation Director for Chile. "By innovating our delivery model, we aim to boost sales while increasing parcel volume. With Extra, drivers can use their own vehicles to collect predetermined quantities of packages from our distribution centers for delivery, working no more than eight hours daily."

According to company estimates, each daily route will distribute approximately 68 packages grouped by neighborhood or municipality. Drivers can earn up to 65,000 Chilean pesos per day plus a 12.25% statutory withholding tax, with payments processed the following Thursday.

Requirements to Become a Mercado Libre Delivery Partner

Individuals interested in joining the Mercado Envíos Extra program must download the dedicated application and meet these qualifications:

  • Minimum age of 18 years
  • Valid national identification
  • Current driver's license
  • Vehicle (sedan/SUV/minivan) no older than 10 years

Expanding Logistics Infrastructure

The launch coincides with the opening of Mercado Libre's new storage and distribution center in Colina, Chile's largest e-commerce-dedicated logistics facility. This complements the company's existing network of over 14 distribution centers strategically located across Chile from Antofagasta to Los Rios regions.

Challenges and Opportunities

While the crowdsourced delivery model presents an innovative solution to seasonal logistics pressures, it introduces new operational complexities. Maintaining consistent service quality, effectively managing independent contractors, and resolving potential disputes will require ongoing refinement.

The model's advantages include leveraging underutilized community resources to reduce costs, improve delivery efficiency, and create flexible employment. It also enables Mercado Libre to adapt to regional logistics variations and offer more personalized service.

Industry Implications

Mercado Libre's initiative offers valuable insights for cross-border e-commerce platforms grappling with peak season logistics. As delivery bottlenecks persist, integrating community resources and diversifying fulfillment methods may prove essential for solving last-mile delivery challenges.