Tuesday, 02 January 2024 12:17 GMT

Mercadolibre Upends Traditional Drugstores With $5.8 Billion Brazil Push


(MENAFN- The Rio Times) MercadoLibre, Latin America's largest e-commerce company, just made a bold step into the Brazilian pharmacy market by buying the online pharmacy Memed in August 2025.

This created a stir-Brazil's top pharmacy chain, RD Saúde , saw its stock fall nearly 7% in a single day, and other regional chains saw smaller drops. These figures come straight from Brazil's public stock records.

Brazil has one of the world's largest medicine markets, officially valued at over $30 billion, but only about a quarter of pharmacy sales happen online.

For comparison, major online companies like MercadoLibre see huge growth in countries with fewer restrictions, such as Mexico.

However, Brazil's government rules require online pharmacies to be fully licensed, employ real pharmacists, and obey strict advertising and delivery rules for prescription drugs-facts confirmed by government health regulators.



MercadoLibre brings muscle to this crowded field. The company committed around $5.8 billion in investment for Brazil in 2025, a number verified by company filings.

Brazil now makes up more than half of MercadoLibre 's total revenue. The company can deliver fast and has a loyal customer base, but it cannot just list medicines online like other goods because of the tough rules.

Traditional pharmacy chains like RD Saúde have the advantage of thousands of locations-more than 3,200 stores across Brazil-and can get most medicines to shoppers within an hour, often with customers choosing in-store pickup.

Over 70% of orders use this quick pickup method, a statistic reported by the companies themselves. For outside observers, the story is not just about a tech company versus old-school pharmacies.

It is about seeing who can best serve Brazil's massive demand for medicines when strict laws, high operating costs, and urgent health needs mean that speed and trust still beat price.

MercadoLibre will need to follow every rule, and existing pharmacies must keep improving their speed and service to stay relevant. This big move may push Brazil's medicine industry online faster, but slow, steady change is more likely than an overnight revolution.

Every number and rule in this story comes from official government, corporate, and regulatory sources. The true test now is whether high-tech logistics or old-fashioned convenience will win over Brazilian shoppers.

MENAFN01092025007421016031ID1110002854

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.

Search