Amazon and Mercado Libre, Closer To The Last Mile

October 25, 2023 | #DatozByDatoz

The main objective of e-commerce giants, Amazon and Mercado Libre, is to get closer and closer to the last mile. In other words, they aim to be as close as possible to the end customer with the purpose of substantially reducing delivery times to less than 24 hours after placing an online order. 

As a result, in recent years, these e-commerce companies have started leasing spaces in more central locations within cities to make the most of the last mile, which is the final leg of a package’s journey to its ultimate destination. 

While in Mexico, Amazon and Mercado Libre have their largest distribution centers in CTT corridor (Cuautitlán, Tultitlán, and Tepotzotlán) in Mexico City market, which is one of the country’s largest and most dynamic industrial corridors, they have also leased spaces in submarkets such as Centro, Vallejo, and Iztapalapa. 

Both companies share the location in the industrial complex OD888 by the industrial developer O’Donnell, which is situated in Centro corridor, specifically in Gustavo A. Madero borough of Mexico City. It’s worth noting that O’Donnell has specialized in offering industrial spaces ideal for the last mile in Mexico, and they have a significant conversion project in one of the most densely populated areas of Mexico City. 

In 2022, Amazon also leased an industrial space of over 330,000 square feet (ft2) in Vallejo-Azcapotzalco corridor from Corporate Properties of the Americas (CPA) to bolster their last-mile operations in the center of Mexico City market. 

In recent years, various developers have chosen to utilize industrial building conversions to provide last-mile facilities to e-commerce, logistics, and consumer companies. This is because the trend of e-commerce is expected to continue growing in Mexico and around the world. 

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