Impacted by Amazon's official launch of Amazon NOW fresh grocery instant delivery service in Brazil, Latin American e-commerce giant MercadoLibre's stock price fell by 6.5% during pre-market trading on Thursday.

This new service promises to complete grocery deliveries within hours, directly challenging the delivery advantage established by MercadoLibre's Mercado Envíos logistics network in the Latin American market. Market analysis indicates that Amazon's strategic expansion will intensify competition in Brazil's e-commerce sector. As the largest e-commerce platform in Latin America, MercadoLibre has consolidated its market position in recent years through continuous investment in logistics infrastructure. However, Amazon's direct offensive, leveraging its global supply chain system, may reshape the local retail landscape. Investors are concerned that both parties will engage in fierce price wars and service competitions in the rapidly growing Latin American e-commerce market. Although MercadoLibre disclosed in its third-quarter financial report that its logistics network now covers more than 90% of Latin America, Amazon, with its Prime membership system and cloud-supported delivery solutions, still poses a significant threat to the current market leader.