Amazon Teams Up with Jüsto to Bring Fresh Groceries to Mexican Shoppers

Amazon.com Inc AMZN collaborated with Mexican grocery delivery startup Jüsto to offer fresh groceries and staple items through Amazon’s platform in Mexico.

This partnership allows Jüsto’s products to be available directly on Amazon’s Mexican website. Jüsto will manage the delivery process.

Ricardo Weder, founder and CEO of Jüsto, views this collaboration as an opportunity to gain greater online visibility and boost adoption in a market where only 3% of the population currently buys groceries online, Bloomberg reports.

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Amazon, in turn, expands its inventory of fresh food items, aligning with its strategy to offer faster delivery services and capture more demand for everyday essentials typically bought in physical stores.

This new development follows a recent funding round for Jüsto, which raised $70 million in equity and debt financing. The funds will likely support Jüsto’s growth in Mexico.

Weder told Bloomberg that approximately 68% of Jüsto’s offerings come from small- and medium-sized Mexican producers.

Weder aims to expand into all major Mexican cities within 18 to 24 months.

Recently, Wall Street analysts from Bank of America, Wedbush, Goldman Sachs, and Needham noted Amazon’s growth, which was driven by AWS’s steady expansion, particularly in AI, and rising cloud demand.

According to analysts, strength in North American retail, Prime membership growth, and increased advertising potential bolster Amazon’s outlook.

Analysts highlighted Amazon’s retail strength in North America, which is driven by expanded Prime membership and the July Prime Day boost.

Improved product variety and focus on affordable essentials are increasing basket sizes, aiding Amazon’s market share growth, especially in grocery and pharmacy.

Analysts note that the company’s emphasis on value items and everyday essentials continues to build customer loyalty and profitable market share.

Price Action: AMZN stock is down 1.02% at $195.91 at the last check on Monday.

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