$MELI's Real Moat Isn't E-Commerce, It's Logistics
Logistics is an important moat for $MercadoLibre(MELI)$ !
Competition can kill even the strongest of businesses. Moats protect companies from competition. By building a large and sophisticated logistics network,
MELI increases the barrier to entry for new entrants. If MELI spends a decade and billions in building Envios, competitors would have to do the same. Physical assets are not that easily disrupted.
Let’s say that a competitor with a better website, smarter marketing, and unique products enters a market MELI operates in. All of those things won’t matter if customers must wait 1-2 weeks to receive their order.
Convenience and price trump uniqueness and novelty!
And the next step to deliver superior convenience is same and next-day delivery.
As of LTM Q1 2026, the company delivered 199M packages with same or next-day delivery, doubling in 3 years.
Yes, it is a more expensive network to build and operate, but it increases the probability that someone will buy a $60 blender knowing that it will arrive tomorrow morning.
History tells us that MELI won't remain at this price for long!
🔴 May 2016, 20% Drawdown
🟢 +81% in the next 12 months
🔴 June 2018, -30%
🟢 +96% NTM
🔴 Nov 2019, -28%
🟢 +63% NTM
🔴 July 2022, -68%
🟢 +86% NTM
🔴 June 2026, -39%
🟢 NTM?
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