New valorization logics in the figure of the digital platform: The case of MercadoLibre

Abstract

The ongoing transformation towards a “platform economy” involves an increasing number of economic, political, and social phenomena enabled by diverse digital platforms. Due to their socio-technical nature, contextual factors are likely to impact the ways digital platforms are designed and how they operate in different locations. Moreover, with pioneer research beginning to identify the main mechanisms of platform capitalism, its expansion around the globe also calls for a deeper understanding of its historical and geographical dimensions. A still unexplored issue is how its general logic is expressed in the peripheral countries, and how it interacts with a center-periphery dynamic.This paper analyzes the case of MercadoLibre, a leading e-commerce and financial platform in Latin America. While Amazon is part of the USA digital surge, the global center of the “platform revolution”, and Alibaba developed under unique context and conditions, MercadoLibre found its way in peripheral capitalism. Although far away in terms of volume and scale from the two etail giants, this case is relevant to understanding the variety and interactions in the patterns of development of Platform Capitalism.We focus on the relations between business models, regulatory context, and internationalization patterns of this digital company from the global South that could face the competition from Amazon and Alibaba in the region. In particular, we discuss the interaction between the disruptive nature of its valorization logic and the configuration of its extractive, financial, and logistics operations. We present a panorama of competition in the industries in which it participates, the particularities of its location in the global South, as well as the growing power of platform owners and their intertwined nature with institutions.