Journalist breakfastJournalist breakfast

Aug 2011

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stDaniel RabinovichCTO@drabinovich

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Who we are (2’)

MercadoLibre is the largest e-commerce platform in Latin America and the 8thth Retail Site in the world (ComScore).

• Went Public in 2007 (NASDAQ: MELI)

• 13 countries

• #1 in every market

• 58MM users

• 52k professional sellers (Nielsen)

• First Half 2011:

• USD 2BN Gross Volume

• 22,5MM Units Sold

• USD 541MM Payments Volume

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An ecosystem of ecosystems

MercadoPagoPayments

MercadoLibreMarketplace

MercadoClicsAdvertising

MercadoShopsStores

Closed

Open

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Exporting Technology to 13 operations

Daniel RabinovichCTO

Buenos Aires Center

Ramiro CormenzanaDiego Salama

San Luis CenterHernán Di Chello

Sergio Cirielli

Palo Alto CenterRodrigo Benzaquén

• IT = Technology + Product (Headcount: 266)

• Owns all 4 Businesses in 13 operations in LatAm

• 4000+ servers, 30+ DBs, 7 offices (1600+ employees)

• 2 IT centers: Buenos Aires & San Luis

• Launching a new R&D Center in Palo Alto, California

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Innovator’s Dilemma

• “The only constant is change” - Isaac Asimov

• “How a successful company with established products keeps from being pushed aside by newer, cheaper products that will, over time, get better and become a serious threat” - Clayton Christensen, HBS Press, 1997

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Disruption example (Business Side): MercadoClics

Selling traffic from the Core Marketplaceto large retailers outside our “walled garden”

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Disruption example (Business Side): MercadoShops

A full-featured, free, e-commerce website in 5 minutes.For everyone.

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Disruption example (Tech Side): Open Platform

MELIUsers

MobileApps

3rd PartyWebApps

DesktopApps

BackOffice

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More disruptions: Open Source our own tools - Cacique

Cacique is a scalable testing product based on Selenium

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More disruptions: Open Source our own tools - ChicoUI

Our graphical libraries (HTML5, CSS3, Jquery)We’ve rebuilt our properties on top of it.

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Where the Web is going and what we’re doing about it

... using Kevin Kelly’s 6 “upcoming trends” as a guide

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Kevin Kelly’s 6 upcoming trends

• Screens everywhereScreening

• If it can be shared, it will be sharedSharing

• Everywhere, always onInteracting

• Everything is producing “streams” of dataFlowing

• Accessing is better than owningAccessing

• Where will the value come from?Generating

Credit to Kevin KellyCo-founder of the Wired Magazine

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Trend #1: Screens & cameras everywhere

Credit to Kevin KellyCo-founder of the Wired Magazine

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MELI: Open APIs & let others develop on different platforms

Revenue sharing with 3rdparty developers

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Trend #2: Sharing

Credit to Kevin KellyCo-founder of the Wired Magazine

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MELI: Social channels & Recommendations

Credit to Paul Adams Global Brand Experience Manager, Facebook

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MELI: Social channels & Recommendations

MercadoLibre on my Wall

Most shared items on MELI ->

Your friends as an “endorsement”

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Trend #3: Interactivity (screens “watch”)

Credit to Kevin KellyCo-founder of the Wired Magazine

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MELI: Eyetracking is the first step (offline interactivity)

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Trend #4: Flowing

EverywhereAlways On

Credit to Kevin KellyCo-founder of the Wired Magazine

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MELI: It’s all about data (+ algorithms)

• 1000 search queries per second

• 40MM units sold, 6,7MM Payments a year

• 58MM users, 450K Facebook fans

• Optimization example:

Automatic “zoom in”:Demand data was

concentrated in a L2 Categ

Best possible Top Nav Bar, Specific facets

Implicit Keywords: 1st resultdoesn´t contain the word “reflex”

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Trend #5: Accesing (not owning)

Credit to Kevin KellyCo-founder of the Wired Magazine

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MELI: Consume & Produce Services @ Business & Tech levels

Produce software as a Service (SaaS)

Consume SaaS

Produce & Consume Infrastructure as a Service (IaaS)

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OpenStack – Infrastructure as a Service (IaaS)

• Each team manages it’s own Hardware

• Move “machines” from one datacenterto anothes with one click

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Trend #6: Generating, where the *Value* will come from

Findability

Attention

Personalization

ReputationCredit to Kevin Kelly

Co-founder of the Wired Magazine

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Attention & Findability

The value of knowing the best 5 items (out of 50K).Algorithms are commodities, it´s DATA what really matters

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Personalization

The value of knowing the buying preferences for tens of millions of users

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Reputation

The value knowing the track record of each seller on the platform

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Wrapping up…

• #1 e-commerce platform in the region, #8 in the world

• Exporting technology to 13 operations in Latin America

• Open Business Model: MercadoClics, MercadoShops & MercadoPago

• Open Technology: APIs + Monetization tool

• Open Sourced tools: Cacique & Chico-UI (more to come)

• Hybrid cloud & Infrastructure as a Service with OpenStack

• 2 IT centers: Buenos Aires & San Luis

• Opening a new R&D Center in Palo Alto, California

Journalist breakfastJournalist breakfast

Aug 2011

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stDaniel RabinovichCTO@drabinovich