GOL and Mercado Livre announce unprecedented partnership

On the morning of this Tuesday (19) the GOAL it’s the Free market announced a agreement for the transport of goods. The deal is valid for the next 10 years and provides for optimizing delivery times for e-commerce consumers.

about the deal

With the agreement, GOL will assign six Boeing 737-800NG aircraft to Mercado Livre, with three planes joining the e-commerce fleet as of June this year, and the remainder to be delivered during 2023. allows for the ordering of six additional aircraft by 2025.

The 737-800NG will undergo a conversion process for freighters at GOL Aerotech at Belo Horizonte International Airport, in Confins. Once converted for cargo, the models will be renamed to Boeing 737-800 BCF (acronym for Boeing Converted Freighter) and will have an operating capacity of 24 tons. When finished, the planes will carry the colors and logo of Mercado Livre.

“This business model heralds a new phase for GOL and for GOLLOG. The expansion of the scope of services of our logistics unit with cargo plane operations for the leader of the e-commerce market in Latin America brings, in a structured and sustainable way, scale efficiency and economic security for both companies, in addition to the growth of the market expected for the coming years”says Paulo Kakinoff, CEO of GOL Linhas Aéreas.

Optimizing delivery time

Through the agreement, it is expected that some regions of Brazil, mainly in the North and Northeast, will be served more quickly, reducing the waiting time for freight. “While some cities like São Paulo and Rio de Janeiro received orders within 1 day, other cities had a deadline of up to eight days. With the partnership, we will optimize this time, reducing the period to up to two days”, said Fernando Yunes, vice president of Mercado Livre. Check below the expected difference in delivery:

  • Manaus (AM): from 8-9 days to 1-2 days;
  • Belém (PA): from 4-6 days to 1-2 days;
  • Fortaleza (CE), São Luís (MA), Teresina (PI), Recife (PE), Natal (RN), João Pessoa (PB) and Salvador (BA): from 3-4 days to 1-2 days;
  • Brasília (DF), Goiânia (GO) and Cuiabá (MT): from 2 days to 1 day.

Yunes also reinforced that Mercado Livre will not pass on the investment amounts to the third-party client. That is, the freight will not be adjusted due to the addition of aircraft. “The cost of shipping does not change for customers, what will change is only the delivery time. We believe that with the optimization of deadlines, more purchases will happen and, finally, Mercado Livre will reach more people, increasing loyalty in the regions”he added.

Financial feedback

With the exclusive operations for the Free Market, GOL expects to directly generate 100 new jobs and approximately 90 indirect positions. “We estimate that GOLLOG will register an increase of approximately 80% in the capacity offered in tons and increase the range of services offered with an incremental revenue of R$100 million in 2022 and of more than R$1 billion in the next 5 years”, said Julio Perotti, executive director of GOLLOG.

The allocation of the 6 aircraft exclusively for cargo operations opens a new chapter of efficiency in reducing GOL’s unit costs, since, combined with the acceleration in the transformation of the fleet to 737 MAX, it will allow greater dilution of fixed costs, reduction of idle and increase in new opportunities to generate ancillary income.

Good news for Mercado Livre consumers, especially those who live in the North and Northeast regions. With the partnership with GOL, the delivery time will be (much) faster than what is currently practiced.

Through the agreement, Mercado Livre will triple its aircraft fleet, from three to nine aircraft. The executives also informed that the agreement with GOL is not exclusive, that is, the e-commerce will continue to operate the aircraft of the former business with Azul Cargo Express, the result of a partnership signed in 2019.

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