Mercado Libre leaves Córdoba and looks to Mendoza: what's behind this move?

This week, the Argentine company Mercado Libre announced on social media platform X its decision to implement remote work for its 1,260 employees, ceasing operations from its physical offices in the city of Córdoba. The decision was made in response to "the impact generated by municipal taxes" in that province.

The company reported that it must pay $770 million in municipal taxes each month, which would be equivalent to 24 rents for its current office (a 1,800 m² space in a building in Capitalinas, in the heart of the Cordoba capital).

An amount that, according to the company itself, is completely disproportionate to the activity and size of its team in Córdoba, especially compared to other cities where it operates similar operations. At the same time, in the statement, the company emphasized that there is no equivalent counterpart in infrastructure or service improvements to justify such a charge.

Without a doubt, this decision highlights the impact that tax burdens can have on cities' competitiveness in attracting and retaining investment in our country.

This episode raises a key question: what stance will provinces take regarding the opportunity to attract or retain companies operating in the knowledge economy, such as Mercado Libre, in their territories? In a scenario where talent can work remotely and companies can operate without being tied to a physical location, each city's competitiveness equation inevitably begins to include the tax burden, regulatory predictability, and the quality of services offered in exchange for those taxes. Provinces that manage to generate an environment that balances tax collection with incentives for activity, quality infrastructure, and reasonable costs will likely be the ones that can consolidate the establishment of these companies, thereby sustaining employment and the development of their local economies.

In this context, Mendoza is emerging as one of the provinces that could attract the interest of the company led by Marcos Galperín. Rumors are growing that the e-commerce company is seeking to strengthen its presence in our province, especially based on advances in logistics infrastructure: The provincial Minister of Production, Rodolfo Vargas Arizu, reportedly revealed that Mercado Libre has already moved forward with the construction of a warehouse in our province. However, its location is not yet publicly known.

Mercado Libre plans to add 2,200 new jobs in Argentina, bringing the total to 15,000 employees nationwide, in a strategy that seeks to strengthen its logistics and expand its presence in new regions, including Cuyo. So, the question remains: will our province be the one to capitalize on this opportunity and become a new hub for the e-commerce giant?