Amazon Marks Its Biggest Expansion In Brazil Since 2012: Reuters

Amazon Inc AMZN has expanded its e-commerce logistics centers in Brazil to eight, according to a Reuters report on Monday.

What Happened: The company has added three new centers in the states of Minas Gerais and Rio Grande do Sul and the capital city of Brasilia.

Amazon's distribution space in the country is enhanced by an additional 75,000 square meters with the expansion, and it would also add 1,500 direct jobs, the Jeff Bezos-led company said, as per Reuters. This is reportedly Amazon's largest expansion in Brazil since it first started operations in the country in 2012.

Amazon Brazil Chief Executive Officer Alex Szapiro told Reuters that the company would be able to make two-day prime deliveries to more than 500 cities, a 25% increase compared to the previous outreach of 400 cities, with the latest addition of logistics centers.

Why Does It Matter: Amazon’s investment is spurred by the growing e-commerce business in the region, primarily due to lockdowns and social distancing.

Domestic competitor Mercadolibre Inc MELI reported a 109.3% YoY revenue growth from the commerce business segment for the third quarter of 2020.

With over 5.6 million COVID-19 infected cases, Brazil is trailing only behind the U.S. and India, as per data from Johns Hopkins University.

In October, Amazon invested $100 million for setting up two fulfillment centers, along with a support building, in Mexico.

Price Action: On Friday, AMZN stock closed at $3,311.37, 0.32% lower.