MercadoLibre

MercadoLibre combines multiple moat sources: two‑sided network effects in its marketplace and acquiring networks; cost advantages from a purpose‑built, high‑throughput logistics network that delivers most parcels in under 48 hours in key markets; data scale that improves ad targeting, search relevance and fraud/underwriting; and efficient scale in LatAm where replicating its end‑to‑end stack is economically daunting.

Ads is becoming a third profit engine, aided by Google Ad Manager integration that extends reach beyond its own apps. Headwinds that could erode the moat include aggressive promotions by global challengers, regulatory scrutiny of platform and fintech practices, and potential capex arms races.

Netting these factors, we view MELI’s moat as wide and strengthening with use.