Amazon’s $25M Bet on Rappi: A Strategic Play to Dominate Latin America’s Super-App Ecosystem

Amazon’s $25 million investment in Rappi in 2025 marks a pivotal moment in the global tech giant’s quest to solidify its foothold in Latin America’s rapidly evolving super-app ecosystem. This move, structured as a convertible note with the potential to secure up to 12% of Rappi if certain milestones are met [1], underscores Amazon’s recognition of the region’s untapped potential. With e-commerce in Latin America projected to reach $160 billion by 2025 [3], Amazon is positioning itself to capitalize on a market where digital convenience is reshaping consumer behavior.

Rappi: The Super-App Powerhouse

Rappi has emerged as a regional leader, operating as a hyperlocal super app that integrates food delivery, digital payments (via RappiPay), travel bookings (RappiTravel), and subscription services (RappiPrime). In 2023, the company reported $856 million in revenue, achieving 37% year-over-year growth [6]. Its unit economics are particularly compelling: delivery expenses account for just 10% of gross merchandise value (GMV), far below industry averages for platforms like Uber Eats and Zomato [1]. This efficiency, combined with Rappi’s expansion into fintech and logistics, positions it as a critical player in Latin America’s low-penetration e-commerce landscape [6].

The recent $100 million loan from Santander and Kirkoswald Capital in August 2025 further validates institutional confidence in Rappi’s scalability [1]. However, the partnership with Amazon elevates its strategic value. By integrating Amazon’s advanced logistics and cloud infrastructure, Rappi can enhance its delivery optimization algorithms and expand its service offerings, particularly in Brazil and Mexico—two of the region’s largest e-commerce markets [3].

Amazon’s Strategic Logic: Market Access and Ecosystem Expansion

Amazon’s investment aligns with its broader 2025 goals to strengthen its presence in Latin America’s e-commerce and delivery sectors. The region’s mobile-first consumer base is increasingly adopting super-app models that bundle services into single platforms [2]. By partnering with Rappi, Amazon gains access to a hyperlocal delivery network and a customer base that values speed and convenience. For instance, Rappi’s ability to deliver groceries in under 35 minutes in some cities complements Amazon’s global logistics expertise, creating a hybrid model that could outperform rivals like MercadoLibre [5].

Moreover, the partnership leverages existing synergies. Rappi already uses Amazon Web Services (AWS) for cloud infrastructure and offers Amazon Prime members in Mexico free shipping through its delivery network [1]. This integration allows Amazon to deepen its penetration into Latin America’s digital ecosystem without overhauling its existing infrastructure.

Competitive Dynamics: Amazon vs. MercadoLibre

MercadoLibre, the dominant e-commerce player in Latin America, has built a vertically integrated super app that includes e-commerce, digital payments (Mercado Pago), and logistics (Mercado Envios). Its first-mover advantage and tailored solutions for low-credit-card-penetration markets have made it a regional powerhouse [4]. However, Amazon’s global scale and technological innovation present a unique challenge.

While MercadoLibre excels in localized financial services and BNPL (Buy Now, Pay Later) offerings [4], Amazon’s partnership with Rappi introduces a complementary approach. By combining Rappi’s agile delivery model with Amazon’s retail media capabilities and cross-border logistics, the duo can target price-sensitive consumers and small businesses more effectively. For example, Amazon’s presence in Mexico has already driven a 28% reduction in prices for consumers [5], a competitive edge that could disrupt MercadoLibre’s pricing strategies.

The Super-App Ecosystem: A $160 Billion Opportunity

The Latin American super-app market is expanding rapidly, driven by mobile payment adoption and the integration of multiple services into single platforms. By 2025, 65% of Latin American consumers are expected to use at least one super app regularly [1]. Rappi’s ecosystem, which includes loyalty programs (RappiPrime), fintech, and entertainment, is well-positioned to dominate this trend. Amazon’s investment accelerates this trajectory, enabling Rappi to scale its services while embedding Amazon’s brand into the region’s digital fabric.

Risks and Considerations

Despite its strategic merits, the partnership faces challenges. Latin America’s fragmented regulatory environment and varying consumer preferences across countries like Brazil, Mexico, and Colombia could complicate scaling. Additionally, MercadoLibre’s entrenched ecosystem, particularly through Mercado Pago, remains a formidable barrier. However, Amazon’s ability to innovate—such as leveraging AI for demand forecasting and route optimization [5]—may mitigate these risks.

Conclusion: A Win-Win for Amazon and Rappi

Amazon’s $25 million investment in Rappi is more than a financial transaction; it is a calculated move to dominate a $160 billion market. By aligning with a regional super app that already boasts 37% year-over-year growth [6], Amazon gains access to Latin America’s digital-first consumers while enhancing its logistics and fintech capabilities. For Rappi, the partnership provides the capital and infrastructure to scale its services and compete with global players. As the region’s e-commerce and super-app ecosystems mature, this alliance could redefine the competitive landscape, offering investors a compelling long-term opportunity.

Source:
[1] Amazon Buys Stake in Latin American Delivery Startup Rappi [https://www.bloomberg.com/news/articles/2025-09-08/amazon-buys-stake-in-latin-american-delivery-startup-rappi]
[2] Super Apps: Asia, Latin-America vs the West [https://ergomania.eu/super-apps-overview-2025/]
[3] E-Commerce Trends in Latin America 2025 [https://uniqbe.com/en/business-strategy/e-commerce-trends-in-latin-america-2025-emerging-opportunities-digital-transformation/]
[4] MercadoLibre (MELI) - Amazon in the Amazon [https://www.bristlemoonresearch.com/p/mercadolibre-meli-amazon-in-the-amazon]
[5] The Top E-commerce Delivery Firms in Latin America [https://americasmi.com/insights/top-e-commerce-delivery-firms-latin-america/]
[6] Rappi revenue, valuation & growth rate - Sacra [https://sacra.com/c/rappi/]