Mercado Libre Worth More Than Ypf

[Rich One]

Today Clarin mentions that Mercado Libre is worth US$ 12 Billion And Ypf is worth only US $ 9.6 Billion.
Mercado Libre was created by an Argentine developer, now it operates in the entire Latam.

 

[Ceviche]

There is scope for more ecomerce stores in Argentina and bring in competition for mercado libre.

 

[gostomper]

oil prices are down and Argentina doesn't have THAT much oil. nice to see that a country that shouldn't be the #1 company in the country isn't

 

[Ries]

There is scope for more ecomerce stores in Argentina and bring in competition for mercado libre.

this has not proven to be true anywhere else- ebay, amazon, google, and similar companies hold effective monopolies in much bigger, much more potentially profitable markets globally.
the idea that you could overthrow an established brand like that is usually not proven in the real world.

the exceptions, like the recent rise of WeChat, in China, is due to special circumstances, usually government support. WeChat, for example, has the chinese government helping it in many ways, including integrating its payment system into the state controlled chinese banking system. It has 900 million users, and its only charge to them is .01 percent (one tenth of one percent) and only on payments.

I cannot imagine an argentine startup that would have the funding required to compete with mercado libre charging one tenth of a percent...
nor can I imagine the argentine government mandating effortless electronic transfers of money from all banks, either to mercado libre, or a competitor.

I think, in this market, first in is a huge advantage.

 

[Ceviche]

the idea that you could overthrow an established brand like that is usually not proven in the real world.

No one said overthrow. I said " to create competition". There is possibility of another e commerce business to establish itself in Argentina

 

[Gringoboy]

If OLX got its act together and stopped looking so amateur, then yes, ML would have decent competition. I advertise bilaterally with OLX and ML and apart from ML's odious payment restrictions, such as forcing MercadoPago down our throats, their categorisation by product and location is very well honed.
OLX on the other hand have an abysmal system which is only redeemed by zero commission and the fact that the seller doesn't need to hide his identity and can be contacted directly.
Here's a sample of what you might pay when using a card to buy through ML.

 

[db887]

Is OLX also divided by countries? Cannot sell in one country and live in another?

 

[Gringoboy]

I know it's global and if you go to olx.com you'll be directed to the page nearest your IP. Mind you, if you have an account, there's nothing stopping you from advertising from wherever you are.

 

[Rich One]

Today Clarin mentions that Mercado Libre is worth US$ 12 Billion And Ypf is worth only US $ 9.6 Billion.
Mercado Libre was created by an Argentine developer, now it operates in the entire Latam.

ML has entered into de NASDAQ 100 list in Wall Street displacing YAHOO. ML stock has risen 80 % since the beginning of the year.

 

[Macanudo]

MELi stock price is now three times what it sold for in February 2016. In that same period Amazon stock has not quite doubled.