Amazon (AMZN) has made an equity investment in the Colombian delivery company Rappi, marking the official establishment of a strategic partnership between the two companies. This collaboration integrates the e-commerce giant’s retail resources and technological infrastructure with Latin America’s leading last-mile delivery network. Although the initial investment is relatively modest—reportedly a $25 million convertible note, according to sources familiar with the matter—it paves the way for Amazon to potentially increase its stake in the future. Under the agreement, Amazon has the right to acquire up to 12% of Rappi through warrants upon achieving certain milestones, with the exact percentage subject to adjustment based on conditions.
By leveraging Rappi’s established logistics system, Amazon will enhance its competitiveness against regional e-commerce leader MercadoLibre (MELI). For Rappi, the partnership not only brings the endorsement of North America’s largest e-commerce platform but also provides access to Amazon’s extensive network resources in logistics and cloud computing.
In recent years, Amazon has consistently made strategic investments in various companies through warrants, spanning industries such as aviation, grocery distribution, and electronics manufacturing. This strategy aims to foster synergies between these businesses and Amazon’s operations, driving growth in the invested companies and thereby generating greater returns for Amazon.
Since its founding in 2015, Rappi has expanded its operations to multiple Latin American countries, including Mexico and Chile. Its “Turbo” service promises to deliver a wide range of products—from wine to daily necessities—within ten minutes. In addition to delivery services, Rappi offers diverse businesses such as food delivery and digital wallets, and it has obtained approval to provide credit card and savings account services in countries like Colombia.
Rappi is backed by several well-known investment institutions, including SoftBank Group, Sequoia Capital, and T. Rowe Price. Last year, the company’s co-founder and CEO, Simón Borrero, stated that Rappi is on track to initiate its listing process in New York by 2025. Last month, it was also reported that the company had secured a $100 million loan from Santander Bank and Kirkoswald Capital Partners.
It is worth noting that Amazon’s investment builds upon an existing collaborative foundation between the two companies. Rappi is a customer of Amazon Web Services (AWS), and in Mexico, Amazon already offers Prime members year-round free delivery through Rappi, demonstrating that the depth of integration between the two companies is continuously accelerating.
