Amazon has acquired a stake in the delivery company Rappi, according to Bloomberg: a strategy to compete with Mercado Libre?
Amazon , the American e-commerce retail giant, entered the delivery business in Colombia with the acquisition of a stake in the home delivery company Rappi.
According to Bloomberg, which cited anonymous sources close to the deal, Amazon acquired 12 percent of Rappi . However, these figures could change, the sources cautioned.
Jeff Bezos is the owner of Amazon. Photo: EFE
The initial investment would have been made through a convertible promissory note of 25 million dollars.
The deal would allow Rappi to gain the support of North America's largest online retailer and opportunities to leverage its logistics and cloud computing networks, while also solidifying Amazon's position in Latin America to compete with Mercado Libre.
Bloomberg highlighted that Amazon's investment in Rappi strengthens existing commercial ties. Rappi is a customer of Amazon Web Services, the cloud services provider. In Mexico, Amazon offers Prime members a year of free shipping through Rappi.
Amazon seeks to consolidate its presence in Latin America. Photo: Friedemann Vogel / EFE
According to Bloomberg, in recent years, Amazon has made a habit of using warrants to make direct investments in partners, including airlines, a grocery distributor, and electronics manufacturers, in an attempt to reap more profits if Amazon's business boosts its partner's fortune.
Rappi is backed by investors such as SoftBank Group Corp., Sequoia Capital, and T. Rowe Price.
Rappi became a multipurpose service platform Rappi was founded in 2015 in Colombia as a home delivery startup, but is currently a multipurpose service platform that also has operations in Argentina, Brazil, Chile, Mexico, Peru, and Uruguay.
Rappi was born as a home delivery startup 10 years ago. Photo: Abel Cárdenas / EL TIEMPO
Last August, Rappi secured a $100 million loan from Santander Bank and Kirkoswald Capital Partners to expand in Latin America, primarily in Mexico, and refinance debt.
Furthermore, its executives are betting on a public offering this year. Simón Borrero, co-founder and CEO of Rappi, announced that the company could go public in 2025, possibly in New York.
Additionally, according to Bloomberg, Rappi has become ubiquitous from Mexico to Chile with its "Turbo" offering, a promise to deliver everything from white wine to toothpaste in less than 10 minutes. "The company also delivers from restaurants and has expanded into the financial sector, creating a digital wallet and obtaining regulatory approval in countries like Colombia to offer credit cards and savings accounts," Bloomberg highlighted .
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