Amazon Partners With Online Grocer Jüsto for Deliveries in Mexico
In an exciting development for the Mexican e-commerce landscape, Amazon and Jüsto, a prominent grocery delivery startup, have teamed up to bring Jüsto’s offerings to the online retailer’s platform. This partnership aims to enhance Amazon’s inventory with a robust selection of fresh produce, meat, and fish, all provided by Jüsto, which will also be handling deliveries.
Shoppers in Mexico visiting Amazon’s platform will now find an expanded variety of fresh products and essential groceries available at their fingertips. This collaboration offers Jüsto greater online visibility, amplifying its reach significantly. Ricardo Weder, the founder and chief executive of Jüsto, expressed optimism during an interview, emphasizing the advantages of this strategic alliance for both companies.
This partnership aligns with Amazon’s broader vision of speeding up delivery times, a move that has already proven effective in boosting sales of everyday essentials from its platform. By making these essentials more accessible, Amazon aims to compete directly with traditional brick-and-mortar stores and solidify its position in the Mexican market.
In a significant boost to its finances, Jüsto recently secured $70 million in equity and debt financing, with the investment led by General Atlantic LP. The startup also boasts investments from prominent entities such as Femsa Ventures and Grupo Bimbo SAB. This financial backing positions Jüsto strongly for growth in the rapidly evolving grocery delivery sector.
Ricardo Weder highlighted the uniqueness of the collaboration, stating, “Jüsto is going to be Amazon’s produce and grocery proposal in Mexico.” He acknowledged that it’s rare for Amazon to entrust the entire customer experience to a third party, an opportunity that fills the Jüsto team with anticipation and enthusiasm.
While Amazon owns Whole Foods Market in the U.S. and operates its Amazon Fresh grocery stores, this partnership marks a significant step in expanding its grocery services in Mexico, where only a small fraction of the population, around 3%, currently buy groceries online. Weder sees immense growth potential in fostering greater online grocery adoption through this partnership.
Jüsto, which was founded in 2019, operates primarily in Mexico City but has extended its reach to other key areas, including Monterrey, with additional presences in Peru and Brazil. The company employs approximately 2,500 people and is committed to supporting local economies by partnering with local producers to create a private label under the Jüsto name.
By eliminating intermediaries and adopting a vertical integration approach, Jüsto can offer competitive prices to its customers. This model not only benefits consumers but also local producers, who enjoy higher sales volumes and better pricing. “Upwards of 68% of our products are sourced from small and medium Mexican producers,” Weder noted, highlighting the substantial impact on the local economy. Some small producers have even reached sales of 5 to 7 million pesos per month, a testament to the partnership’s success.
With the financial boost from its latest funding round and the strategic partnership with Amazon, Jüsto is poised for significant expansion within Mexico. Weder outlined the startup’s ambitious plans, stating, “Our goal in the next 18 to 24 months is to operate in all of Mexico’s main cities.” He emphasized the vast market opportunities available, underscoring Jüsto’s commitment to leveraging its current momentum for continued growth.
This alliance between Amazon and Jüsto promises to reshape the online grocery landscape in Mexico, offering consumers a convenient, reliable, and an expanded grocery shopping experience. As they work together to tap into the burgeoning online grocery market, both companies are well-positioned to meet the evolving needs and preferences of Mexican shoppers.
