← Lenny's Podcast: Product | Career | Growth

How Mercado Libre built Latin America's most valuable company: 18k engineers, 30k deploys a day, and their own fleet of planes | Sebastian Barrios

Episode 2025-06-082025-06-08English

Guests: Sebastian Barrios

How Mercado Libre built Latin America's most valuable company: 18k engineers, 30k deploys a day, and their own fleet of planes | Sebastian Barrios
Listen to this episode00:00 / 1:19:25
Reading settings
Reading preferences
Text size
Download in-depth read
Read offline

English · In-depth read · Current version

Downloads are not available yet.

Full transcript · Read the full conversation in order, with its original context.

Contents4 chapters§01Transcript · 00:00–19:05§02Transcript · 19:05–40:19§03Transcript · 40:19–59:14§04Transcript · 59:15–1:19:01

§01Transcript · 00:00–19:05

00:00Steve Jobs called you.

00:01One day I'm walking in the street and I get a phone and a blocked number.

00:05I was super young, by the way, at the time.

00:06I think I was like 16.

00:08Pick up.

00:08I said, well, hi, it's Sebastian.

00:10This is Steve from Apple.

00:11I need to talk to you about your app.

00:13We're not going to be able to have it on the App Store.

00:14I actually pushed back a little bit until I read all the rules of the App Store.

00:19He told me check again because we just added a new rule.

00:21At 19, you built an app that became the number one app in 19 countries.

00:26absolutely exploded.

00:27I actually got contacted by a lot of different companies like multinationals,

00:31governments saying like,

00:32well,

00:32you have the number one app.

00:33We want you to build an app for us.

00:35You oversee something like 18,000 developers.

00:39We do around 30,000 deployments per day.

00:43We deliver over 5 million packages per day.

00:46You're really big on not creating a big distinction between engineering and product.

00:51It's hard to separate where engineering stops and product begins.

00:55We don't feel like just having a title should determine who was the owner.

00:59Is there anything else that might be helpful for folks either about how you operate as a human,

01:03morning routine, we were raised in a very intensely independent way.

01:09My mother mainly, the analogy that she used is that she wanted to train us like spies.

01:13She would drop us in the middle of the city,

01:15Mexico City,

01:15and we'd be like,

01:16you have to get back home.

01:17You have to like know public transit or ask someone for help and basically solve problems.

01:23Just go and get things done.

01:25Today, my guest is Sebastian Barrios.

01:28Sebas, as most people know him, is currently Senior Vice President of Engineering at Roblox.

01:33He was also a longtime Head of Product and Engineering at MercadoLibre.

01:37MercadoLibre might be the biggest and most interesting company that you have never heard of.

01:41And Sebas might also be the most interesting product leader that you've never heard of.

01:45MercadoLibre is currently the most valuable company in Latin America valued at over

01:49$100 billion,

01:51which also makes them one of the 150 most valuable companies on the planet.

01:55They also have one of the largest engineering teams on the planet with over 18,000

01:58engineers operating in 18 countries.

02:01They deploy an unprecedented 30,000 times a day.

02:05The company owns their own trucks and planes.

02:08They deliver over 5 million packages a day.

02:11At one point, eBay tried to acquire them.

02:13They ended up acquiring PayPal instead.

02:15Now they are larger than both eBay and PayPal combined.

02:18Also,

02:19just wait till you hear the stories about Sebas's early life,

02:21including how his mom trained him like a spy,

02:24why he only drinks water,

02:26no coffee or tea or juice,

02:28why he doesn't listen to music,

02:29also why steve jobs personally called him when he was 17 years old telling him that

02:34they are booting his app from the app store and forever changing the app store

02:37policies as a result a huge thank you to christopher lazarus oscar mullen and

02:42farhan thaur for suggesting topics for this conversation

02:45If you enjoy this podcast,

02:46don't forget to subscribe and follow it in your favorite podcasting app or YouTube.

02:49Also,

02:49if you become an annual subscriber of my newsletter,

02:52you get a year free of Bolt,

02:55Linear,

02:55Superhuman,

02:56Notion,

02:57Perplexity,

02:57Granola,

02:58and more.

02:58Check it out at lenny'snewsletter.com and click Bundle.

03:01With that, I bring you Sebastian Barrios.

03:05This episode is brought to you by Merge.

03:08Product leaders, yes, like you, cringe when they hear the word integration.

03:13They're not fun for you to scope, build, launch, or maintain.

03:16And integrations probably aren't what led you to product work in the first place.

03:20Lucky for you, the folks at Merge are obsessed with integrations.

03:24Their single API helps SaaS companies launch over 200 product integrations in

03:29weeks,

03:30not quarters.

03:31Think of Merge like Plaid, but for everything B2B SaaS.

03:34Organizations like Ramp,

03:36Drada,

03:36and Electric use Merge to access their customers' accounting data to reconcile bill

03:41payments,

03:41file storage data to create searchable databases in their product,

03:45or HRIS data to auto-provision and deprovision access for their customers'

03:49employees.

03:50And yes,

03:51if you need AI-ready data for your SaaS product,

03:54then Merge is the fastest way to get it.

03:56So, want to solve your organization's integration dilemma once and for all?

04:01Book and attend a meeting at merge.dev slash lenny and receive a $50 Amazon gift card.

04:07That's merge.dev slash lenny.

04:12This episode is brought to you by Vanta.

04:14When it comes to ensuring your company has top-notch security practices,

04:18things get complicated fast.

04:21Now you can assess risk,

04:23secure the trust of your customers,

04:25and automate compliance for SOC 2,

04:27ISO 27001,

04:29HIPAA,

04:30and more with a single platform,

04:32Vanta.

04:33Vanta's market-leading trust management platform helps you continuously monitor

04:37compliance alongside reporting and tracking risk.

04:41Plus, you can save hours by completing security questionnaires with Vanta AI.

04:46Join thousands of global companies that use Vanta to automate evidence collection,

04:51unify risk management,

04:52and streamline security reviews.

04:54Get $1,000 off Vanta when you go to vanta.com slash Lenny.

04:59That's V-A-N-T-A dot com slash Lenny.

05:07Sebas, thank you so much for being here and welcome to the podcast.

05:11I'm super happy to be here.

05:12Thank you for hosting me.

05:13This is the first time that you're doing a major, let's call it major podcast.

05:18I think you can call it major podcast.

05:21You can be proud of what you've done.

05:22I appreciate that.

05:25So let me just start with a stat that I think is going to blow a lot of people's minds.

05:29You oversee something like 18,000 developers.

05:34Is that right?

05:34Is that the right number?

05:35That is the right number.

05:3618,000 and climbing.

05:40I just specify that they don't report all directly to me.

05:43We can talk about how the company is structured.

05:45But yes, I lead the technology team that basically powers all of what they do.

05:49I think essentially you guys are in the top 10 of most engineers at a company.

05:54You're like above Salesforce and TikTok, NVIDIA, Adobe, Uber, OpenAI.

06:01That's right.

06:01I think you have to go into like big tech or huge banks to get a larger number.

06:07Okay.

06:08So a lot of people listening to this have not heard of MercadoLibre.

06:12A lot of listeners are in the US, other parts of the country outside of Latin America.

06:16Give us just like a brief explanation of what does MercadoLibre do.

06:20And then give us a few more stats that will blow people's minds to the scale of

06:25this business at this point.

06:26Happy to.

06:26Happy to.

06:27So you can think of us as a completely vertically integrated

06:32That means buying and selling any product you can think of.

06:37And the vertically integrated part means we have our own distribution network,

06:40we have our own airplanes,

06:42we have our own trucks.

06:44We have to do all the technology and coordination behind that.

06:48But even or in addition to that, we also have a very large fintech operation.

06:54The two sides of the business are actually almost the same size.

06:57So we also offer accounts,

06:59we offer credit cards,

07:00we offer loans,

07:02all of that are like integrated with each other into what we call an ecosystem.

07:08Okay.

07:08And I saw a stat that you guys plan to have over 100,000 employees by the end of this year.

07:13That's right.

07:13There's a lot of operations that need to happen for all those packages to be delivered.

07:20You asked about some fun statistics,

07:23specifically with deliveries,

07:25we deliver over 5 million packages per day or items.

07:29So you visit most of Latin America.

07:31We have some very cool visualizations where if you track the

07:34routes of our trucks and delivery vans and whatnot.

07:38You sort of like paint a picture of Latin America, which is pretty fun.

07:42We obviously operate in major cities,

07:44but we have very,

07:46very large capillarity and reach all the different corners of Latin America.

07:52Okay, a couple more stats that you didn't mention.

07:55You guys are valued over $100 billion.

07:57It's a large company.

07:58We don't focus on the stock price that much.

08:02But yes, $100 billion.

08:05Even more so now, depends on how the market's feeling and what the global news are.

08:10But yes, one of the top valued companies on the planet.

08:16We have around 100 million users, customers, sellers, people interacting in the

08:22in the platform and as you mentioned,

08:24one of the larger engineering and product building teams on the planet.

08:28Hopefully people now get the sense of like, holy shit, there's a lot to learn here.

08:33There's kind of two buckets to the way I want to approach this conversation.

08:35One is just really unique,

08:36interesting ways you all operate and how you scale a business like this,

08:40how you build product.

08:41The other is just you as a human are really interesting.

08:44And there's a lot of stories I've heard that I want to talk about,

08:45but I'm going to save that for next.

08:48Let's start with how you all operate.

08:50So I talked to a lot of people that work with you, that work at MercadoLibre.

08:54One of the themes that came up again and again is you're really big on not creating

08:58a big distinction between engineering and product.

09:01It's essentially one team for you guys.

09:04Talk about just how that works specifically,

09:05just like what does that mean and why that's so important to you.

09:08For me and for MercadoLibre,

09:11it's hard to separate where sort of like engineering stops and product begins.

09:16We do have...

09:18a small product organization there are people in medical leave that have the the

09:22product manager title but the the ratio is much smaller than any other tech company

09:28that that you would think of and the way we we think about it is like that we we're

09:33not going to determine who's going to own the product just based on the title it's

09:36going to be based on who's the best for that role no and then uh

09:40It turns out that for us,

09:41in the majority of the cases,

09:43it's the engineering leaders,

09:45it's the tech leads,

09:47it's the people that can understand what's technically possible,

09:51and they're also good.

09:53What are the business needs?

09:54What are the user needs?

09:55What are the users doing?

09:56How am I going to measure that?

09:58Combine that into a single role.

10:01To make this even clearer, you have 18,000-ish developers.

10:06How many people have the PM title?

10:08I think it's less than 1,000.

10:10I think that would make like 5% work in other companies.

10:16Maybe you have 10, 20, 30%, even more other companies.

10:21So two follow-ups here.

10:22One is just why do you think operating this way is more effective in your business?

10:28And do you need to hire engineers in a different way for them to succeed in this

10:33way where they're basically playing the PM role?

10:35This works because you want to be as close to the problem as possible.

10:39And that probably works being as close to the technology as possible,

10:43being as close to the users as possible.

10:45You can have it with two different people that have to interact and coordinate.

10:49And that obviously works as well, right?

10:51I'm not saying this is the only way to do it.

10:53Clearly, there are a lot more examples.

10:56Maybe we are actually the exception and it would be hard to replicate anywhere else.

11:00But if you're able to have that whole context in a single mind,

11:04in a single person that can then deliver that vision to the team,

11:07I think it leads to great products that users are going to love and enjoy.

11:13In terms of hiring,

11:14we do,

11:16in the interview process,

11:17test for product skills,

11:20but we mainly do test for engineering skills.

11:22I think it's worth being honest about,

11:24like,

11:25we have a strong bias for engineering,

11:28for being technical,

11:29for being deep into the details.

11:32There's not a lot of tolerance for being in a meeting and getting asked a question.

11:37It's like,

11:37well,

11:37I need to check with this person to understand the details because,

11:40you know,

11:40I'm not sure what technology we're using.

11:42Like,

11:42That would not fly.

11:44So there's a bias towards the tech side of it.

11:48And then once you're inside MercadoLibre,

11:52we'll probably get to know you a lot more and it'll be very clear if you have the

11:56product inclination or if you would be more comfortable just with the engineering.

12:02What's really interesting about this is a lot of companies start with no PMs and

12:06they're like,

12:06we never need PMs.

12:07We're just going to be engineers leading products.

12:09It's going to be amazing.

12:10And then usually,

12:11eventually,

12:13these engineers realize,

12:14I don't want to be doing all this bullshit PM work.

12:16I just want to code.

12:17I want to build.

12:17What am I in meetings all day writing specs?

12:20And it's interesting.

12:21You guys have scaled to $100 billion market cap, 18,000.

12:25people on the product team developers and still you're working this way.

12:29It's really rare.

12:30What do you think has allowed you to operate this way at this scale that maybe

12:33other companies can't?

12:35Yeah, I think it's also a top down thing where a lot of the leadership

12:41is very technical.

12:43They're very into the product.

12:46They're also very into the business, into the numbers, into the details.

12:51It's amazing to be on the C-level meetings and the kind of questions,

12:56the kind of level of attention.

12:58I know founder mode is now a term that's there, but

13:03The company has been operating like that for a while,

13:06where discussions will even go as deep as,

13:10okay,

13:10why are we using that copy?

13:11That's way too many words.

13:13It's not clear.

13:14Hey, why is this pixel here where we could use that space for something a lot more useful?

13:19And these are literally conversations at the C-level,

13:23asking,

13:24okay,

13:25how does this work for users?

13:26When you

13:27present a feature.

13:29And here I'm going to stereotype other companies.

13:31No,

13:31it might not be the case,

13:32but my understanding is anytime it's okay,

13:34how much revenue can we get from this new feature?

13:36Or what's the metric that's going to move?

13:39For Marcos, our CEO, the first question is,

13:43Always, okay, how's the user going to experience this?

13:46Show me the flow.

13:47Show me the user experience.

13:48Are they understanding it?

13:49Show me the metrics that people are actually liking what we're doing.

13:53Putting the users before the revenue obviously turns into revenue in the future or

13:59in the long term,

14:00which is what you're

14:01So again,

14:02I think the top-down version of that,

14:07maintaining the culture and being able to select for the top of the top talent in a

14:14whole region,

14:14in multiple countries,

14:16I think it's what's allowed that to happen.

14:19And the business, as you said, there's a lot of technology, right?

14:23You need to do the routing for all the buses, the trucks, the planes, the distribution centers.

14:30You need to do routing for picking items within the distribution centers,

14:35risk,

14:36content moderation,

14:37search,

14:39robotics.

14:39There's a really long list of really fun initiatives that we're working on.

14:45They're all very technical and turn into value for our users.

14:49I can't help but ask how does AI impact this way of working where engineers are

14:53doing more and more of the PM work?

14:56Is that just accelerating that further?

14:57Is there anything you can share about just how AI is changing the way you operate?

15:01It's a great question because you probably always hear it from the other side.

15:05People who are more product oriented are not going to need engineers as much.

15:09So for us, the change is accelerating what people can do on both sides.

15:16I don't think there's any competition.

15:18And again, we don't see a line between product and engineering as strongly as other companies.

15:25So I'm extremely happy when someone who's more product oriented

15:30comes in and can actually start developing more stuff on their own, even just demos.

15:35We can talk about the AI hype a little bit in the future,

15:40but it's definitely great to make demos,

15:42to actually turn ideas into something that you can touch,

15:45something that you can see.

15:47designs and seeing a lot more people enabled to do that.

15:52I think it's just accelerating everything we do.

15:54On the actual coding side,

15:56of course,

15:57it started as advanced autocomplete and now you have agentic frameworks and Cursor

16:02and Windsurf.

16:03OpenAI just made an acquisition.

16:05Clearly, it's sort of like a big shift in the way we develop technology.

16:11It's not at the point where it can sort of like do anything and everything and

16:16security,

16:17compliance,

16:18all the different things that go around actually turning a demo or a product into

16:23something that's going to reach the production or the market takes time.

16:29But I would say we're taking it even further.

16:32We always like to think in terms of platforms.

16:35It's one of the reasons why we've been able to scale the team so much.

16:38We have a great internal development platform that takes care of a lot of scaling,

16:42security,

16:43building,

16:44testing,

16:45compliance.

16:46So developers and teams can just focus on adding value.

16:50And we're taking the same approach with AI.

16:52We

16:54developed an internal platform called Verdi that basically abstracts away a lot of

17:00the complexities around,

17:01okay,

17:01where are you going to get the data?

17:02How is it going to be authorized?

17:05And that in itself has been evolving as the models become more capable.

17:10Now you can have more

17:11It's called agents, agentic frameworks, things taking action, taking over longer tasks.

17:18And we're seeing great results with skipping code entirely.

17:23I think it's a fun one where

17:26The prompt or what you actually want the product to do is everything you tell the system.

17:33We came up with ways to use our existing code.

17:36So it's not like there's no code in any of what I'm talking about.

17:40But we basically can extract the functionality of every single one of our microservices.

17:45And then we can have agents build and use different parts of different services and

17:51create new features for users end to end.

17:54with a UI.

17:55So that's something that is still experimental,

17:58obviously,

17:59but it's happening,

18:00and it's just going to accelerate as the models get better.

18:05So we literally have things that are taking existing code,

18:08so it's not like code doesn't exist,

18:10but you don't have to write any new code.

18:12There's a lot of functionality that we already have on the platform,

18:15and you can combine different parts of it and turn it into a new feature or product

18:21without any intervention from anybody.

18:24code, extra code.

18:25That is very cool.

18:26So essentially you have all these APIs and microservices and your agents can just

18:31use what already exists to add new features.

18:34Exactly.

18:34And if you extend it a little more, you could even

18:38reach a point where UIs and apps are entirely generated.

18:45These are all the things that you can do inside MercadoLibre.

18:49You can buy stuff,

18:50you can get a credit card,

18:51you can move money around,

18:53and then have a completely personalized UI for a user predicting what are you going

18:59to do next and just having that as the main screen.

19:01Maybe you have other screens, obviously, that allow you to do everything, but

§02Transcript · 19:05–40:19

19:05It's an exciting future.

19:08I think we're going to see a lot more automated UI.

19:12Wow.

19:13Okay.

19:13I'm going to try to resist just making every conversation about AI.

19:17So let's leave that aside and maybe we'll come back to it, but let's zoom out a little bit.

19:20And I want to hear other key or very unique ways of working that you have figured

19:26out that allow you to operate this team of 18,000 developers and continue to ship

19:31great product.

19:32So if you had to pick like, I don't know, two or three key ways of working, what would those be?

19:37One big one, it's a cliche but it's true, is the fear of failure.

19:44We actually empower our teams to make mistakes.

19:49No one's going to get fired for releasing something that

19:54It didn't work in the sense that maybe the market was not ready or we had the wrong

19:58idea on where we had to implement.

20:00Obviously,

20:01there's a lot less tolerance for bad quality and it failed because the product

20:05wasn't good or it was going offline.

20:09Those kinds of failures are...

20:12much less tolerated.

20:14But we do encourage our teams to take a lot of risks on what we should actually be working on.

20:20We also let them be very independent.

20:22I think it goes hand in hand.

20:25For example,

20:25we don't operate with OKRs where everything just trickles down into what every team

20:30is supposed to do.

20:31We have very high level objectives on where we want the company to be.

20:36And they're not even that long term.

20:38It's not like we have a 10 year plan.

20:40And I think in a market that's changing so much,

20:43even before AI,

20:43I know this is an extremely competitive market with very dynamic regulations in

20:49multiple countries.

20:50So it's hard to say like, OK, this is a plan for 10 years and these are the OKRs.

20:54And now everyone go into your teams and implement the specific features that are

20:58going to point to that.

21:00The way we run it is these are the objectives.

21:02These are maybe some of the new businesses or areas where we would like to explore.

21:07But everything else is up to teams.

21:09We just cascade the main vision of where the company is going.

21:14And there's a lot of another cliche, freedom and responsibility.

21:18Saying like, okay, do whatever, literally whatever you think is best.

21:21for our users, for the company, for what we want to accomplish.

21:27There's going to be tight feedback loops on that to also make sure everyone's

21:30pointing in the same direction.

21:32But you can't be telling 18,000 people exactly what they should be working on every

21:39day and expect that to work.

21:41So there's a fun combination of what can you delegate, what can you not delegate.

21:47We're also, I think, very hands-on

21:50wherever we can be.

21:51So we can't be on every single detail.

21:55But in the projects that we feel are most important,

21:58the whole leadership team goes extremely deep into working with the team,

22:03understanding what the restrictions are,

22:05what's working,

22:06what's not working,

22:07and pushing the team forward.

22:10So I think that's probably the main one.

22:14We also talked about putting users before revenue.

22:17I think that's another...

22:18A big one that we've liked.

22:22And there's another tricky aspect of it because life is trade-offs.

22:25So you say, okay, let's be very distributed on what the teams are going to be working on.

22:31Then you can end up with a product that has great parts.

22:34But once you put them all together, it's horrible and it sucks.

22:38People don't like it.

22:39So you also need a mix of, okay, this is a holistic vision.

22:44This is what we want to accomplish.

22:46This is what probably the end product is going to look like.

22:49And then you can build the features.

22:52And there's no like one rule that basically applies to all projects.

22:56There are times where you can have more freedom.

22:58There are times where you do require a lot more sort of like, yeah.

23:02one vision of where things are going.

23:04So I think that's another important one.

23:07What else?

23:08We like to observe users more than talk to users.

23:12You always hear, talk to users, listen to users.

23:15They're going to tell you what they want, what they need.

23:18That works sometimes.

23:20We've seen that what works best is just to observe them,

23:23whether that's literally like user research sessions and just seeing what people

23:28are doing with the

23:30product.

23:31I'm sure this has happened to you and to many people that listen to your show and

23:36you cringe at all the assumptions that are being crushed before your eyes as

23:41someone types in their email and their name in the same field because your field

23:47said email,

23:47comma,

23:48name.

23:49So you could either have the email or the username and people say,

23:52well,

23:52I'll write both because that's what they're asking of me.

23:55So a lot of examples like this where

23:57observing users is extremely valuable.

24:01I think those are the ones that come to mind.

24:03Okay, this is great.

24:04Let me follow up in a couple of these.

24:06So what I'm hearing is there's a lot of independence and kind of distribution of

24:11ownership where teams can kind of go off and build their own stuff.

24:14As you pointed out,

24:17it's important to have a vision and some sense of what success looks like and make

24:21sure everyone's rowing in the same direction.

24:22Just going at a level deeper,

24:24how do you actually operationalize that sort of way of operating where teams can do

24:28their own thing,

24:28but you also share a vision?

24:30Like how often do you

24:31update that vision?

24:32How do you communicate it?

24:33And then how do you check in with teams to make sure they're heading towards the

24:38right direction?

24:38We don't do anything magical there.

24:41We do a lot of design reviews,

24:43I think is a term that they would probably use,

24:46or product reviews.

24:47in the US where it's like, okay, this is what we're working on.

24:50This is what it looks like.

24:51This is what all the pieces together are doing and working or not working.

24:57And there the leadership team is extremely candid and honest on their feedback,

25:03always cordial and a happy work environment,

25:07but definitely on the side of being honest about what's working,

25:11what's not working.

25:13Whether the vision was mistaken as well.

25:17There are many times where we've thought this was the right direction.

25:21Turns out it's not.

25:22And we can pivot very quickly into a new thing.

25:26So no big secrets.

25:32Maybe the only secret is

25:34You can't check absolutely everything when you have 18,000 people.

25:37So to give you another crazy statistic,

25:38we do around 30,000 deployments per day,

25:40like changes to production.

25:4130,000.

25:50PRs, a day.

25:52PRs, deploys, changes to a system.

25:56It can be configuration changes.

25:58It can be database updates or whatever.

26:01Things that change.

26:03There's no way anyone can check what those 30,000 changes are doing.

26:09That's more than one per developer.

26:11Yeah.

26:12Yeah, some of them are automated changes as well.

26:15But yeah,

26:16we have a very high speed of execution and it's quite fun to be around something

26:25that's changing that rapidly and that dramatically.

26:30We,

26:31again,

26:32have many different businesses,

26:33many different competitors in different businesses who operate at world class,

26:38whether it's finance,

26:39whether it's e-commerce,

26:42I would even say business.

26:44Brazil is probably one of the most competitive markets on the planet for e-commerce.

26:48You have local players,

26:49you have international players,

26:50you have players from Asia that are even funded by video game revenue and profits.

26:57So it's a great dynamic market to be around.

27:02I like that optimism, that way of framing it.

27:05We like competition,

27:07especially when you're competing with the top of the top and it pushes you to be

27:12better as well.

27:14This point you made earlier about being the top company in a market is really interesting.

27:20I was wondering if I wanted to come to this,

27:22but I think it's interesting to talk about for a bit.

27:24So I've had a few product leaders from companies like Revolut, N26.

27:29I haven't had Intercom on yet, but the co-founder is coming on soon.

27:34And a theme across all those conversations about how they've built companies

27:40such a strong product team that pumps out incredible product leaders is they're the

27:44top startup in their market and it's just an interesting thread of just how much

27:49power comes with being the most successful company in a market and just like the

27:54cycle of success that comes from that in terms of hiring amazing people is there

27:58anything else there that you think might be interesting to folks that are i don't

28:01know that want to try to do something like this other than just build a successful

28:04business

28:05I think it applies to many things.

28:07And you often also hear like, well, you're not in the Bay Area.

28:12You're not in the pinnacle and the capital of technology.

28:16So how can you build amazing technology?

28:19There are advantages as well.

28:21I think you would find the same with,

28:23you mentioned a bunch of companies that have experienced that where,

28:26okay,

28:28if you can be the top in a region where there's great talent,

28:33by statistical definition,

28:34there's great talent everywhere.

28:36It probably follows a probabilistic distribution, so it's everywhere.

28:41A lot of it does flow into the U.S., and it's absolutely true that there's...

28:47a very high concentration of talent outside specific companies.

28:51I think that's probably the one thing you don't get outside of the big tech hubs

28:57where you are the top company,

29:00but you are the only top company.

29:02I'm exaggerating a bit.

29:04There are great companies throughout the world and in Latin America.

29:08unicorns and their outliers but the truth is you're setting your own path and

29:14you're setting your own map and setting your own destination you're building things

29:20that have not been built before in a different way and it's very fun that's for

29:25sure

29:27By the way, I'll correct.

29:28I said Intercom.

29:29I think they're technically a U.S.-based company,

29:31but I think a lot of their team is in Ireland or is originally in Ireland,

29:34just to be clear there.

29:35And then there's other companies like Canva and Atlassian.

29:40What I'm taking away from this is if you want to build a company outside of the U.S.,

29:44You need to be the best in that market to take advantage of this cycle that happens

29:50where the best come to you.

29:51Yeah,

29:51maybe you could say you have to be the best eventually if you want to have that

29:55flywheel running.

29:56It's hard to start and be the best and the biggest.

30:01when you're just getting started.

30:03But I think knowing that there's great talent everywhere and that it is possible to

30:09attract them without being in a specific tech hub.

30:13Maybe even empowering.

30:14I want to start a company here.

30:18I think we can also be honest that it will be harder.

30:20It is easier to recruit and build a team where you're in a place where the high

30:26density is all over.

30:28Another thing that happens to us is that many people try to recruit from us and

30:32that's something that we have to deal with.

30:36But if you actually get that flywheel going, it becomes into a clear advantage.

30:42I want to come back to something you said that I think

30:45might be there might be something more there which is around reducing the fear of

30:49failure a lot of companies and leaders say that they're like yeah yeah we let

30:53people fail totally no problem but then in reality you know they performance

30:57reviews they got to show impact they have to show success is there something you do

31:02to actually create that sort of culture where failing is okay like what can people

31:07learn from you to actually create that sort of culture

31:10I think that question is even more on how does culture work at any company, especially at ours.

31:16It's very clear that it's not what you write on the walls or what you put on your website.

31:22From what I've learned and what we've seen, it's what you do.

31:27It's what the leadership team is doing,

31:30is how I get my performance reviews,

31:32how I get either praise or not praise.

31:35And in public, what are the

31:37acceptable errors, where are the not acceptable errors?

31:41Because again, if we have a system outage, it's obviously unacceptable.

31:46That's not the kind of error that we're going for.

31:50We're going for,

31:52well,

31:52if you took a risk in a very bold vision and it turns out it was not the right

31:57path,

31:58you're not going to get penalized for that.

32:00You might even get a promotion and those messages that you send are extremely powerful.

32:09Who has what title?

32:09Who gets promoted?

32:10Who doesn't get promoted?

32:12Who is getting what praise in public?

32:16What announcements are made on new products?

32:19How do we talk about things that didn't work?

32:23One very clear one is like, okay, this didn't work.

32:26And yes, we like risk with the person that led the project was fired.

32:30It's like, well, then you're not sort of like living what you have on your website.

32:35So I think it is not more complicated than that.

32:39You need to live it.

32:40You need to show it.

32:41And you also need to have people that will take in that culture and also propagate

32:47it into their teams.

32:49That's also the way...

32:50It scales in the organization,

32:52but it definitely starts with the top management of the company and again,

32:57what they are focused on,

33:00what messages they're sending to the rest of the company.

33:03They participate in the product reviews.

33:05They are very aware,

33:07at least of all the big features that we launch and the feedback is direct and

33:13clear.

33:14Today's episode is brought to you by LinkedIn ads.

33:17One of the hardest and also most important parts of B2B marketing is reaching the right people.

33:24I'm constantly getting ads for products that I will never buy.

33:27And I almost feel sorry for the money that these companies are spending,

33:30pitching me on their spend management software or some kind of cybersecurity

33:34solution that my one man business just does not need.

33:38When you're ready to reach the right professionals, use LinkedIn ads.

33:41LinkedIn has grown to a network of over 1 billion professionals,

33:45including 130 million decision makers.

33:48And that's where it stands apart from other ad platforms.

33:51You can target your ad buyers by job title,

33:53industry,

33:54company,

33:55role,

33:55seniority,

33:56skills,

33:57even company revenue.

33:58All the professionals that you need to reach in one place.

34:01Stop wasting budget on the wrong audience and start targeting the right

34:05professionals only on LinkedIn ads.

34:07You talked about this idea of being direct and honest,

34:09but also maintaining a cordial environment.

34:29Talk about just that balance in the culture you've created of being direct,

34:32kind of this idea of radical candor is what I'm hearing.

34:34Yeah, so the book became very popular.

34:39The book Radical Candor?

34:40Yeah.

34:41Oh, awesome.

34:42We had Kim Scott on the podcast.

34:43It's a great book, and the concept is also great.

34:47I would even say it's even more important in Latin America,

34:52in some Asian countries where you have a culture,

34:57and I'm Latin American,

34:58so I can

34:58Talk a little bit about stereotypes without it becoming offensive,

35:04especially ones that are true,

35:06where there's a lot of hierarchy and I'm not going to tell my boss that he's wrong.

35:10We're just going to do this because he said so or she said so.

35:14This is the way it works.

35:16This is the way it's always been done, so that's the way we're going to do it.

35:20I don't want to stand out.

35:21These are sort of like cultural stereotypes that we are extremely aware of when we operate.

35:28People are extremely polite in Latin America as well.

35:31I don't know if you've traveled, everyone will smile at you.

35:34It will be very hard for someone to say no to something.

35:38Even like meetings or whatnot, they'll say, yes, but later, yes, but later.

35:42And they actually...

35:44mean no i think they're argentina and other countries but argentina where the

35:49company was was founded is an exception to that where people are uh very direct uh

35:55i will tell my boss if he if he's wrong uh it's something that i love about the

36:00company and we've been able to sort of like export that and also select for people

36:04that will actually uh behave in in that way but yes we're

36:09extremely direct, extremely candid.

36:13We're honest about what's working, what's not working.

36:17And it's a learning that every manager or leader goes through.

36:23Like, well, I don't want to hurt people's feelings.

36:25I want to be friends with everyone.

36:27I think we all start on that path.

36:31And eventually you realize that people like the honest.

36:34They might not like it in the very short term or in the medium term sometimes.

36:39But my experience has been,

36:41if you're coming from a place of honesty,

36:45again,

36:45if you're not insulting anyone or crossing a line where things feel personal,

36:53people appreciate the feedback.

36:55People like growing.

36:56If you have your performance review and everything comes back positive,

37:01what are you going to do with that?

37:02It's like, well, he's doing great.

37:03Everything's perfect.

37:05Thank you for being a part of the company.

37:08like what could i be doing better what's not working it's also a skill to separate

37:13that from from your person no that we do have situations where uh i've had to have

37:19conversations on like oh you got this strong feedback but but it's on the product

37:23you know it's like maybe on on the vision that we are pursuing or on the execution

37:28uh that their work has nothing to do like with you we can we can go out and and and

37:33and have lunch and we'll still be cordial.

37:39But this idea of,

37:41well,

37:42the companies should be like families and it's not true because you behave

37:46extremely different with your family.

37:48There's no expectation of high performance.

37:51I mean, in some families, obviously, and in some cases, even in mine, we can talk about that.

37:56But it's always from a different perspective,

37:58whereas I think the analogy that we use much more often is of a high-performance

38:03sports team where it's very clear where the line is between,

38:06yes,

38:07we can have fun together and we should as we work on interesting things.

38:12But when you are talking about work and the performance and what's working, what's not working,

38:22The results speak for themselves usually, and we just don't hide that from anyone.

38:28Speaking of that,

38:28along those same lines I heard,

38:29you do something that is a little controversial these days,

38:34but you did this a long time ago,

38:35which is you send a weekly email asking what did you get done this week,

38:39and you share what you got done this week.

38:42uh talk about just that yeah yeah so so it became a a meme uh what was it like one

38:48or two years ago i used to do it before that i should uh i should say and i should

38:52also clarify that i don't actually have an expectation that the that people are

38:56going to send that to me it's something i do myself you know so i'll uh sort of

39:00like go over what i did in the week what worked and

39:03what didn't work, even what interesting things I discovered.

39:07And I will share that with the executive team, with our CEO, who I report to.

39:14I'll share some of that with my team.

39:16It basically helps me keep track of what's working, what's not working.

39:21I usually also get feedback on those emails or help or saying like,

39:26well,

39:26let's talk about this and this and that.

39:27So I think that's something super simple that anyone can do, right?

39:31You can write like a weekly email to your boss or to your team and saying like,

39:36well,

39:37this is what happened this week.

39:38This is what worked.

39:39This is what didn't work.

39:40This is maybe something I need help with or something that's stuck.

39:44Maybe we can unlock it together.

39:46I think it's strange that not...

39:50I haven't heard a lot of people doing it.

39:52I think I actually read it somewhere a couple of years ago and that's probably

39:56where I got the idea.

39:58I'll look it up to see if we can link it on your notes so I don't take credit for it.

40:02I wrote a post about this actually.

40:04I called it the state of me.

40:05Okay, maybe it was you.

40:06I wonder if it was.

40:08Maybe it was you.

40:09Either way, I'll link to this post.

40:11And the whole idea,

40:11and there's like a less controversial way of asking this instead of what did you

40:15get done this week,

40:15which is I call it the state of me.

40:17I call it the state of Lenny email.

§03Transcript · 40:19–59:14

40:19And basically every week, it was a weekly thing for me, not a daily thing.

40:23I email my end manager.

40:24Here's what I got done.

40:25Here's my next set of priorities.

40:27And here's blockers.

40:27I need you to help.

40:28Oh, I probably got it from you.

40:29It's sounding extremely familiar.

40:31So I send the weekly email.

40:32I call it a weekly update.

40:33It's also not like, what did I get done this week?

40:36It can be what I got done on the week.

40:39But important things are happening, new releases.

40:42That also frees up a lot of time, for example, with my COO.

40:48We're like,

40:48okay,

40:48on the weekly meeting,

40:49we don't have to talk about those specific things where we can pick out from that

40:53email what's relevant,

40:54what's working,

40:55what's not working.

40:56So definitely a great tool.

40:57And I'm pretty sure I got from your post just hearing you.

41:00What a circle of light you've got here.

41:04Okay,

41:04so speaking of things that you did before other people,

41:07something else that came up a lot in chatting with folks that work with you is

41:11They pointed out that you're really good at not falling for hype cycles.

41:15You're good at being really pragmatic about things that everyone's really excited

41:19about,

41:20like crypto,

41:21gen AI these days.

41:22How do you approach stuff?

41:23How do you approach new things that everyone's like super excited about and not

41:27kind of fall into this trap of just like,

41:29oh,

41:29we all got to pivot and do this thing that everyone else is doing?

41:32I hadn't thought about it that way, but it's true.

41:35It's true in some sense because it's not like I just ignore it.

41:41I think I bought or even mined my first Bitcoin in 2010 or 2012 or something like that.

41:50We can leave it undisclosed how many and how many I still have.

41:54Why are you even working?

41:56No, not enough for that.

41:59A lot of great lessons on selling.

42:02and won the right time and whatnot.

42:04I had those lessons too.

42:05So it's not like I ignored what was happening.

42:09No, but I'm definitely skeptic of most things, I would say, even.

42:16I like doing a lot of research.

42:18Deep research is a great tool.

42:21I use it all the time for a lot of things.

42:23I do it myself as well.

42:25So with crypto, for example, I love the technology, actually.

42:30I think there are some very fun breakthroughs there,

42:33the distributed consensus and how you got like a single thing.

42:39But then you start to run some of the numbers on like, okay, so what's the throughput?

42:44And then what can you actually...

42:46But in there,

42:47at least with the technology that we had at the time,

42:50a lot of things are moving quickly and you get layer two and layer three and

42:54whatnot.

42:55But I think having a good understanding of the fundamentals and also being involved

43:01probably in like

43:02what I would call the real world in a business and understanding the scale of

43:07what's necessary for things to work is helpful.

43:13Keeping a level head on what are some of the main characteristics of

43:20And by the way, we have crypto in Mercado Libre.

43:25We have our own cryptocurrency.

43:26So it's not like we just say,

43:28well,

43:29crypto is not useful and it's actually very useful in Latin America and countries

43:35where access to U.S.

43:37dollars are...

43:40It's not as easy as in other places.

43:44But I think going from that to saying like,

43:45okay,

43:46every single thing on the planet is going to run on the blockchain,

43:50that's where some of my alarms start to go off.

43:52And it's like,

43:52well,

43:52it can be a great technology and it can be very successful without having to take

43:56over the world,

43:59which can also turn into AI where,

44:02again,

44:02the claims are that it will take over the world and happy to...

44:07Talk about that.

44:08But just understanding the fundamentals of the technology that's being potentially

44:15hyped and having a good understanding of how it could be applied to something

44:20useful for people.

44:21I think it's where it's been helpful.

44:25Awesome.

44:26Okay.

44:26Let's pivot to talking about you as a human.

44:28There's just like so many stories I heard from people that I want to hear about.

44:32Okay.

44:33So one is that you built an app.

44:36You put an app store.

44:37Steve Jobs called you and he's like, Sebastian, we got to remove your app.

44:43Yeah.

44:44Talk about that story.

44:44Yeah.

44:45So we should clarify that the app was a bit strange.

44:49So it was an app that

44:52literally helped you drain your phone's battery.

44:56There were two reasons why I made it.

44:59One was because I was learning about all the different sensors on the phone,

45:03like GPS and gyroscope and the screen and whatnot.

45:08So I said, okay, I'm going to turn them all on at the same time.

45:11And that's going to really warm up your

45:16your phone.

45:18On the other end,

45:20there was like this trend,

45:21I'm not even sure where that ended up,

45:23where it was better for your phone to run completely out of battery and then

45:27recharge it.

45:28I think now the recommendation is actually that it should stay between like 10% and

45:3180% at all times to maintain battery health.

45:34I was like,

45:35okay,

45:36so when you have like 2% left and you just want to get it over with and get the

45:40battery down,

45:41you open this app and like,

45:42drain it.

45:44I like that there's a reason for this because I could see you just doing it for

45:47fun,

45:47but I like there's functionality here.

45:49Yeah, yeah.

45:49I always try to make it useful, at least for me.

45:54So I put it on the App Store and this was the time where

45:59Like the App Store was starting and the app review process and people were actually

46:04getting very mad that their apps were getting rejected.

46:06We're used to like a world where I just put my app out there and anyone can download it.

46:11So developers were going to the press to say like,

46:14well,

46:14Apple is not approving my app and then articles will be written and it would be

46:18like a PR thing.

46:20So the executive team at Apple,

46:22including Steve,

46:23were actually calling developers to inform them that their apps were not going to

46:28be approved,

46:28that they were not taken off the app store,

46:32kind of like trying to avoid them going to the press and just...

46:35Like being more personal and explaining what was wrong with the app.

46:40And so one day I'm walking in the street and I get a phone and a blocked number.

46:45Like you can't identify it.

46:47Pick up.

46:47I said, well, hi, it's Sebastian.

46:49This is Steve from Apple.

46:51I'm here to, well, I need to talk to you about your app.

46:55We're not going to be able to have it on the app store.

46:57This is draining people's batteries and we don't want that for everybody.

47:02for people, actually pushed back a little bit.

47:06I read all the rules of the App Store before making this app,

47:10and there's no rule against draining the battery.

47:14And he told me, check again, because we just added a new rule that apps cannot

47:20overly drain the battery on the phones.

47:23So I'm happy to say there is an App Store rule that was made specifically for me at the time.

47:30I actually didn't realize I had spoken to Steve Jobs until like a couple of minutes later.

47:37I was like, well, yeah, someone called Steve from Apple.

47:39There's probably a lot of Steve's.

47:41I was like, well, you know, that voice sounded extremely familiar.

47:44And I was like, okay.

47:46And then articles started popping up of Steve and the rest of the executive team

47:51calling developers to let them know that this was happening.

47:56So I was happy to confirm that I had at least had a short phone conversation with

48:01Steve,

48:03quite the legend.

48:04That is an incredible story.

48:06First of all, I just love that Steve Jobs was calling random app developers.

48:10Founder Moth, right?

48:14Like, how did he have the time?

48:15I just love that he took, you know, that they realized this is important.

48:18And if people hear from us, that'll actually go for better.

48:21Even though people kept posting, right?

48:23Like people were like, Steve Jobs called me, touched on my app.

48:26So a little backfired, maybe.

48:27And he, how did he sound?

48:29Was he just like, did he, was he this nice radical candor balance of, of

48:32Nice.

48:33Yeah, yeah.

48:34And it's not what you would, again, stereotypically hear from him.

48:38He was a lot more mercurial, I think is a term that people use.

48:42But none of that on the call.

48:44He was actually pretty nice and chill and felt like, well, we're not going to allow your app.

48:49Just matter of fact.

48:50Yeah.

48:51And then you said that they added this rule before he called you.

48:57We have a new rule.

48:57I guess they could do that, right?

48:58It's like our place, our store.

48:59Yeah.

49:00Wow.

49:00Okay.

49:01Amazing story.

49:01Did that discourage you from building more apps or are you just like, holy shit?

49:05No, absolutely not.

49:06I was very happy to talk to Steve.

49:08I sent him a few emails.

49:11I never got a reply,

49:12to be honest,

49:13but I sent some emails on feedback on,

49:16again,

49:16like the App Store,

49:17the iOS and whatnot.

49:18I was super young, by the way, at the time.

49:20I think I was like 16 or 17, 17 or 18 when I developed that app.

49:24So I was like,

49:30I didn't know what it meant to get a call from him and to send him emails and

49:35expect a reply and whatnot.

49:39It was a fun experience.

49:41I kept building more apps.

49:42I actually started a mobile app development company a few months after that,

49:49which is another fun story.

49:51Well,

49:51maybe this is the story,

49:52but I know that at 19,

49:53you built an app that became the number one app in 19 countries.

49:57Maybe just briefly share that story.

49:58That one is super fun.

50:00So I had a girlfriend who I really liked at the time.

50:04I don't know if that happened in the US,

50:07but in many Latin American countries,

50:08and I think throughout the world,

50:10And phone companies came out with something where you could call five numbers for

50:15five minutes for free,

50:16like five for five for five.

50:17So I had my girlfriend's number on there and we would talk for five minutes.

50:22But what they did is if you went over like one second, they would charge the whole five minutes.

50:27And phone bills were expensive.

50:29Now, we're going to sound like old people when we talk about this soon.

50:32It was like a big deal, especially for a teenager.

50:35No, I didn't have like...

50:37money to throw around and on my phone bill.

50:41So I made this app that was extremely simple.

50:43It alarmed you or like it sent a notification when you're close to reaching the five minutes.

50:48So you could just hang up and call again and have another five free minutes and then call again.

50:54I did it for myself.

50:56It turned out to be a good investment because I ended up marrying my girlfriend and

51:01she's still my wife and we have a beautiful family together.

51:04It also turned out to be a good business decision.

51:08So it costs $100, I think it still does, to upload an app to the App Store.

51:12I thought, okay, I need to sell like

51:14Around 100 copies.

51:15I mean,

51:15there are fees and whatnot,

51:16but let's say I have to sell 100 copies for $1,

51:18so I'll put it on the App Store.

51:20That was my business plan, and it absolutely exploded.

51:23It became the top-selling app in Mexico and in a lot of other different countries.

51:28It was not a free app,

51:30and it was also completely local,

51:32so there was no back-end,

51:33no cost,

51:34no advertising.

51:35So it was a very profitable endeavor.

51:40That also very quickly turned into a business in itself.

51:45And then a separate business where people,

51:47this was when the app store was just starting,

51:50when the iPhone was getting big.

51:52So I actually got contacted by a lot of different companies,

51:54like multinationals,

51:56governments,

51:56saying,

51:57well,

51:57you have the number one app,

51:59so we want you to build an app for us.

52:01There weren't that many people.

52:03Into iPhone OS at the time, it was called development.

52:07Pune Objective-C and all the ways to build a good app.

52:12So I started building apps myself for a bunch of different people and companies.

52:16Eventually, I couldn't scale that and had to hire people.

52:20So I hired my friends from college and taught them how to do apps.

52:24We actually all learned from a free online course from Stanford.

52:28It was a great course on how to build apps online.

52:32Because I remember going to my university professors and saying, hey, the iPhone is cool.

52:37I want to learn how to make these apps.

52:39Who can teach me?

52:39And they're like, no one.

52:40This is new.

52:41No one knows how to do it.

52:43So I also had to learn on my own.

52:46But then I was able to teach people, turn that into a mobile app company.

52:50Did that for, well,

52:52two years and it turns out to be a very good business but it's also boring to have

52:57to start over new projects and new projects and new projects.

53:00I like going deep into things and iterating and actually creating products that people love.

53:08So we decided to sell the consulting side of that,

53:11keep the mainly mobile team,

53:14start working on fun products that we could actually scale and scale exponentially.

53:20One of those was ordering taxis from your phone.

53:24So at the time Uber was starting in San Francisco,

53:29they started kind of like a private network of drivers and like fancy cars and

53:34eventually it was open to

53:36uh to a lot of people i thought well that would work great for for taxis and and

53:41mexico city is is the city with the most taxis on the planet uh at least outside um

53:47asia and the the at the time in san francisco for example at least taxis had kind

53:52of like a clunky computer and they were like these tracked by gps or not but like

53:57In Mexico,

53:58they use radios and you had to call a number and you never knew if your taxi was

54:02coming or not.

54:03So we developed a very simple test.

54:06It sounds silly now that these companies are huge,

54:08but I was actually not sure,

54:10are people going to trust getting on a car that they got from a phone in Mexico

54:16City when your parents have told you,

54:18don't trust people on the internet and don't get into strangers' cars.

54:22So we're combining two things that people were taught not to do by their parents.

54:28We decided to just do the passenger app and test whether people actually like this.

54:33So when you requested a car,

54:34we would call a taxi company and basically just call for you and send the car over.

54:41And that was enough for it to explode.

54:43We could not deal with the demand.

54:45We actually had to build

54:47like an intermediary call center to call other call centers while we developed the

54:53driver side of the marketplace and actually got drivers on board.

54:58And once you got the flywheel and you got a lot of drivers and a lot of riders and

55:01the network effects,

55:03then it started to scale and work.

55:06That was a fun experience.

55:09Oh man, you're just a well of fascinating stories.

55:12I love this kind of journey of sharing of just like,

55:15at 16,

55:15I think you built that app that Steve Jobs called you about,

55:17was that right?

55:17Yeah, maybe 17.

55:19Okay, from that to now managing something like 18,000 engineers.

55:23I love this journey.

55:24Also competing with Uber along the way.

55:26Yeah, very intense competition.

55:28I've always enjoyed competition.

55:30That's the epitome of intense competition from what I hear.

55:34Okay, another interesting thing about you that I've heard is that you drink...

55:40You drink no alcohol,

55:41which I think is common these days,

55:42but it's something you've been doing for a long time.

55:43You also drink no tea, no coffee, no juice, no soda, just water.

55:49What's going on there?

55:50Why is that?

55:50I just love water.

55:53Water is amazing.

55:56I think it's not like the same reason for everything.

56:00It has turned now into like, well, I'm happy with water.

56:03Like, why do I have to like

56:05alter my brain with chemicals.

56:07I like my brain.

56:08We have a good relationship and I sleep well and I don't feel like I need

56:16stimulants of any kind.

56:18I already have a lot of fun.

56:20It did start in different ways.

56:23So the legal drinking age in Mexico is 18.

56:30younger than in the US.

56:32So people actually start drinking when they're 16.

56:34So very early, I got to see the effects of at least drinking a lot can have on your body.

56:41And I just never wanted to be in that situation where I didn't have like

56:46control of my destiny and I mean control, right?

56:50We don't have a lot of control on our destinies,

56:52but at least,

56:52you know,

56:53like physical control,

56:54like I want to walk there and can I walk there?

56:57I think that really marks you when you see like young people over drinking.

57:01It's not a fun picture.

57:03Then I understand people like adults can drink responsibly and have fun with

57:08friends and whatnot,

57:08but I never got into it.

57:10And I think it's like an acquired taste.

57:13I don't particularly enjoy the flavor

57:16of like beer and and different alcohols coffee it's also similar i don't like how

57:22it tastes it takes extremely bitter to me i also think it's an acquired taste where

57:26it's like okay well the effect is great because i get like a lot of energy and then

57:31you start to like appreciate the the flavor but i don't think it starts with the

57:35with the flavor so again i never got into it uh tea i think is is something that

57:40I could drink, but I just never think of drinking it.

57:45And I'll probably erase you even one stranger that I don't know if the friends you

57:52interviewed mentioned,

57:53but actually also don't listen to a lot of music.

57:57When I program,

57:58I like to program in silence,

58:00which I know seems extremely strange to a lot of programmers and developers.

58:06And I think the reason for that one,

58:08and also talking about the interesting background,

58:11is my dad's an orchestra conductor.

58:13So I went to maybe hundreds of concerts for podcasts.

58:19big orchestras and backstage and it was actually very fun but I think I had enough

58:24music for a while and it's not like I don't enjoy music my wife is really into

58:29music and we listen to music together with our kids and everything but I never have

58:35like the idea of putting on music myself so that's another strange one to share

58:43That was a good one.

58:43I had not heard that one.

58:45And then another couple things I heard is that you basically don't do any social media.

58:50You also don't watch the news.

58:51You don't watch TV, really.

58:53Is that all true?

58:54That is true.

58:55That is true.

58:57For a really long time, we didn't even have a TV.

59:00like the device.

59:05We bought one when my son was born and we couldn't go to the movies anymore.

59:10So I do like media.

59:12I like movies from time to time.

§04Transcript · 59:15–1:19:01

59:15We do watch shows from time to time, but we can watch them on an iPad.

59:18I think it's a lot less addictive if the screen is small.

59:22Uh, so even though we have a, a TV now, we don't, we don't use it very often.

59:27Um, I love reading.

59:28Um, I love the, and the, the social media thing, I think it's worth, uh,

59:33qualifying as well like i enjoy x a lot like twitter uh and reading like what

59:39people are thinking what's happening what's not happening uh that's probably like

59:43my my main source of news uh i don't follow any like news organizations just

59:48because i feel like i'm gonna find out if something extremely important is

59:53happening uh like now the the the

59:57whole political and geopolitical environment is extremely volatile.

60:01And I hear about that from people that I follow and sometimes I'll retweet articles

60:06and I'll read them.

60:09There was a fun memory of my childhood when...

60:15We had a TV in the house,

60:18and my mom,

60:19who's also a very curious character,

60:21stuck a sign to it that said,

60:24everything you see here is a lie.

60:27She stuck the sign to the TV?

60:29Yeah,

60:30I don't think she meant it to news,

60:31and she didn't get into the whole misinformation thing and whatnot.

60:35It was mostly on,

60:35well,

60:36you're going to watch cartoons of people flying,

60:38and be careful,

60:38don't jump off the roof of the house.

60:42I think it was more in that sense,

60:44but it probably stuck with me of being very independent-minded and do your own

60:50research and actually understand what you're hoping for and what you want to do.

60:56Again, I'm not closing my ears and eyes to what's happening in the world.

61:02And I do follow a lot of tech companies.

61:04coverage and that i enjoy a lot like new programming languages new frameworks new

61:09model developments uh so when i talk about news it's probably like the bad news

61:14that i think people can sometimes even get addicted to if like okay if i turn on

61:18the tv and put the local news channel it's just gonna be bad news uh and i know

61:24that like statistically it's not all bad news so why am i gonna like watch a show

61:28that's

61:29pointing out very unique things that don't happen very often that are not happy stories.

61:35I don't know who said this once,

61:37but it's always stuck with me along these lines of what you just said,

61:40that we're just not designed to know all the bad things happening in the world

61:44every day.

61:45Like we lived in small tribes where a couple, maybe something bad happened that day.

61:49We're not evolved to...

61:51comprehend so many calamities globally that we should not even know.

61:56Absolutely right.

61:56I can't imagine our brains were evolved into,

62:00well,

62:01you know,

62:01you open your phone and you get like unlimited information about any single topic

62:05that you want.

62:06I think you have to be like purposeful of what you're reading, what you're seeing.

62:10You can find absolutely anything, amazing things, horrible things.

62:14So why am I going to like focus on the horrible things?

62:17I love that.

62:18And I feel the same way.

62:20This is such a cool glimpse into just what it takes to be extremely successful,

62:24to go from building this app that Steve Jobs shut down to running a company and a

62:28team this size.

62:30Is there anything else along those lines that we haven't talked about that might be

62:33helpful for folks,

62:34either about how you operate as a human,

62:37morning routine,

62:38trick?

62:38I don't know.

62:38Anything else that we haven't touched on along those lines?

62:41I don't have a strict routine as you would expect when you talk to executives and whatnot.

62:48Like, well, this is the time that I do this.

62:49This is the time that I do this.

62:52I think what's worked great for me is to follow my curiosity.

62:57Thankfully, I think I have good intuition.

63:00But even in life and in my work,

63:05it's hard to say,

63:06well,

63:07this is a formula for what you should focus on today.

63:11have an intuition of what I'm most curious about.

63:15And thankfully,

63:16that usually aligns with what we should be working on and where I can add the most

63:21value to my teams,

63:23to the company,

63:24to my family,

63:25to my career,

63:26to the things I'm

63:28I'm learning.

63:28I think that's probably what's been the guiding principle for me.

63:33Follow your curiosity, what excites you.

63:37It's also probably what you're going to be good at because it's hard to compete

63:42with someone who loves what they're doing if you don't love that thing.

63:46But if you go in and say, well, this is my curiosity.

63:48This is what I love.

63:50I'm probably going to be good at it.

63:52And it's not going to be like something I have to force myself into.

63:55So I think that's something that I've done throughout my whole life and career

63:59that's worked very well.

64:01I had Toby Lutke on the podcast and we were talking about raising kids for a little bit.

64:06And we chatted about what do you want your kid to learn most?

64:10What's the most important trait to develop?

64:12And his inkling is developing curiosity.

64:16Developing curiosity, I think I would agree.

64:18I think the other one that you need is probably, it's also a trending topic now, but agency.

64:25It's not probably enough to just be curious.

64:28Be curious and go get what you...

64:31what you want.

64:32We were raised in a very intensely independent way.

64:40My mother mainly had these fun ideas on how she wanted us to be.

64:46She wanted us to be able to handle any situation.

64:50The analogy that she used is that she wanted to train us like spies.

64:55I was thinking Sparta.

64:57I'll share one fun story.

65:01Uh, one, one morning she wakes us up like, Hey, we're going camping.

65:05Uh, everyone get ready.

65:07Like no warning.

65:08Oh, we're, we're, we're leaning right now.

65:09Uh, I remember, uh, my, my little brother, just so you understand how, how, how that plant work.

65:15His only question was, should I go on my pajamas or should I change, uh, or something?

65:21uh so we go and uh turns out we're we're i think it would be actually hard to call

65:27it camping because we we were camping with no gear you know so it was a survival

65:32camp training uh is what we were going to do uh there was an instructor and it

65:36wasn't like uh completely uh irresponsible but it was like find your own water

65:41build your own shelter boil it start your own fire uh

65:46That was a fun one.

65:47Another fun one, and that was to celebrate New Year's.

65:51Another fun one was she would drop us in the middle of the city.

65:56This is Mexico City.

65:58She says she would then just leave us alone.

66:00I don't remember.

66:00I think she was just following us.

66:02But it would be like, you have to get back home.

66:05and then you have to like know public transit or ask someone for help and basically

66:10like uh solve problems uh she would send us on international trips also alone so i

66:16i think there are many things that she did uh she she called it independence no she

66:21she wanted us to be independent i think the term that we could use now is like

66:25agency if like solve your problems just go and get things and and

66:30get things done.

66:30I think that was also very formative of the way I am and I approach different problems.

66:37Do you feel like she might have actually been training you to be a spy?

66:40Maybe.

66:40We also did a lot of skiing, biking, trekking, and also the action parts of the spy experience.

66:52We used to tease her still that she didn't enjoy activities that didn't have a

66:58liability release before you did them.

67:03So yeah, rappel, climbing.

67:05We had a very fun childhood.

67:08This explains a lot.

67:09I feel like I could do another hour just diving into your childhood and what made

67:12you who you are today,

67:13but maybe we'll save that for part two.

67:15I feel like we've done a great job giving people a sense of just how interesting

67:20you are as a person and also just the uniqueness of MercadoLibre and what they've

67:25built in the business that you help run.

67:28Is there anything else that we haven't touched on that you think might be helpful

67:31to folks or that you want to leave listeners with before we get to our very

67:34exciting lightning round?

67:35I think we covered a lot.

67:37I'm also happy to be able to share.

67:42MercadoLibre doesn't operate in the US.

67:45I think that's the main reason why it's not such a well-known tech company.

67:51I think it's changing.

67:54With the stock growing as well,

67:55it helps a lot of people actually know it from investing and being very happy with

68:01the performance.

68:03Thank you for letting me share some of what we do and some of what I've been doing.

68:08Absolutely.

68:09With that, we've reached our very exciting lightning round.

68:12I've got five questions for you.

68:14Are you ready?

68:14I'm ready.

68:16What are two or three books that you recommend most to other people?

68:19This is a good one.

68:20I think it depends on

68:24the person that I'm recommended to, I try to actually make it relevant to what they're doing.

68:30If we go statistically, it's usually within the company.

68:34So management-related, high-output management, I think is a great one.

68:40But I also have been recently recommending people read The Odyssey.

68:44It's a super, super inspiring story.

68:48It's not a coincidence that it's survived for thousands of years.

68:53It's like,

68:53A really fun read and something that just resonates with a lot of people.

69:00Another book that I really like, it's called The Dream Machine.

69:03And it's kind of like the story of computers and computing and the internet.

69:10And like, for example, why is Ethernet called Ethernet?

69:14There was AlohaNet before.

69:15So I think that's also a great one to understand some of like

69:20The things that we rely on and we stand in the shoulders of giants constantly to

69:28build the things we do.

69:29I think that's another great one because the rest are probably more fiction.

69:34I love Dune.

69:34I love science fiction.

69:35What you would expect.

69:39Okay.

69:39This next question,

69:40I know you don't watch TV,

69:41so let me just ask,

69:42is there a favorite recent movie that you've watched that you really enjoyed?

69:45Yeah, yeah.

69:46I mean, recent, I don't go to the movies as often as I used to since I had kids.

69:53But sometimes we go with them.

69:55But I think probably the last one that resonated with me or that I thought was

69:59awesome was Everything Everywhere All at Once.

70:01Yeah.

70:03Really fun movie, great acting, low budget.

70:06I didn't know when I watched it at the time.

70:08I sort of did research on it later.

70:10That one was super fun.

70:13Dune, I enjoyed a lot because I like the books.

70:17It's one of my favorite books.

70:19But I do watch children's shows from time to time.

70:23There, I'm sure someone has probably mentioned Bluey already.

70:27But it's amazing.

70:28It's really well made for the kids, for the parents.

70:32Great messages, great animation.

70:35That's just a gem that I really recommend.

70:39Yeah, Bluey does come up a bunch.

70:40I feel like it's one of the more mentioned shows.

70:45Do you interview a lot of parents as well?

70:47Yes, I do.

70:48And I'm a new parent, so I'm pulling them in.

70:52Okay, do you have a favorite product that you've recently discovered that you really love?

70:56Yeah, this one is going to be fun for you as well as a parent.

71:00I'm not sure if you've heard of Mentava.

71:03No.

71:03It's a new kind of like way of teaching kids to read.

71:08Oh, the company.

71:11Okay, yes.

71:12Say more.

71:12Yeah, yeah.

71:14I mean, it's a product and it's great.

71:17I did it with my son and

71:19Kind of like I quote-unquote taught him how to read using the program.

71:25And now he's probably the top reader in his class.

71:29How old is he?

71:30So he's five.

71:33It's actually designed for three, four, five-year-olds.

71:36So he was probably late to the...

71:39reading early bandwagon because I haven't really seen strong evidence that it

71:45actually changes outcomes in the future.

71:48The best argument I've seen for it from Matt Bateman,

71:52I'm not sure if you're familiar with him,

71:54but he's

71:54great on education and Montessori is that it can lead to a very enjoyable childhood

72:00if you can read early.

72:01So if you're like a four-year-old,

72:03a five-year-old that can read very well,

72:05you'll have a fun childhood with access to a lot more information.

72:10So for us, it wasn't like a reading early.

72:12It was just making sure you have a really good fundamental on reading because it

72:16was just a base skill that

72:18propagates to the rest.

72:20And in that vein,

72:21actually,

72:22Beast Academy for math is another great one that I would recommend to parents.

72:28That one's great.

72:30And maybe the last product I would mention, David Protein Bars.

72:35They're very good.

72:36I really like weightlifting.

72:38It's sort of like one of the things I do too.

72:40get my blood flowing.

72:43Super high quality ingredients, very high protein.

72:46I think it's actually a venture backed company.

72:48I haven't talked to the founders, but reach out.

72:51I would love to meet you.

72:52You guys are doing something fun.

72:53I think those are the ones that come to mind.

72:573D printers are also fun.

72:58I made a telescope with my son a couple of months ago.

73:01That was very fun.

73:02There's a lot of new products now.

73:04It's a fun time to be alive.

73:06This is your category right here.

73:07Cool, fun gadgets and products.

73:09I feel like this could be another hour of podcasting.

73:12Probably.

73:13Okay.

73:13Two more questions.

73:15One,

73:15do you have a favorite life motto that you often come back to find useful in work

73:19or in life?

73:20That life and the world are malleable.

73:24Things aren't as set in stone as you would think.

73:28There's usually a way to get what you're after.

73:34You actually have to be careful, I think, about what you want.

73:36Because if you have enough agency, you can probably get quote-unquote anything.

73:40So make sure you're looking for something good and that you're going to be happy

73:44with everything.

73:45But the result, that's probably the main one.

73:47I've heard it phrased in many different ways.

73:50Steve Jobs said of like, well, you know, the world was built by people like you, like me.

73:55Some of them not smarter than you.

73:57Some of them may be smarter than you.

73:59So you can just go out and do things as a new meme known.

74:03the world will probably reconfigure itself to help you,

74:07which is that one's from,

74:08from Mark Andreessen.

74:09Uh, yeah, just understanding that, that you can, uh, actually change the world.

74:14It doesn't have to be in a massive way.

74:16It's also possible,

74:17uh,

74:18just in,

74:19uh,

74:19not just getting locked down to,

74:21well,

74:21you know,

74:22this is how it's done,

74:23or this is a culture here,

74:25or,

74:25uh,

74:25this is how it's always been done.

74:26Uh,

74:27I think we can change whatever we want.

74:30What I'm hearing is your mom's goal of instilling agency in you works.

74:34I would say so.

74:36Yes, I have fun solving problems.

74:40Finding your way home from the center of Mexico City worked.

74:43Final question.

74:45A colleague of yours,

74:46maybe friend,

74:47Christopher Lazarus,

74:48wanted me to ask you about something called the Tatami Project.

74:53Does that ring a bell?

74:54Talk about what that was.

74:55Yeah, yeah.

74:56That's from a long time ago.

74:57So you did your very good research.

75:01yeah talking about agency at some point I wanted to have what's called I think it's

75:06called Tammy room not an expert but basically a room in your house where you have

75:10tatamis and you can like meditate there or train or practice my room like my

75:17childhood bedroom was strange in that it had kind of like a basement like two

75:22floors you could open a hatch on the floor and go down I think it was like a thing

75:26from how the house was built but

75:29I decided that that was the best place for putting the tatamis,

75:36but I didn't want to have a roof on top of that,

75:38so I went and bought construction gear and huge diamond cutters and actually cut a

75:45big hole in the middle of my room.

75:48I put a stair and put the tatamis underneath, so I turned my room into a two-floor loft.

75:58which was pretty fun.

75:59I hadn't thought about that in a while.

76:02I used to do a lot of hacker projects and maker things, and I love using my hands.

76:08I love building products, technology, code, but also physical things.

76:14I had a lot of fun with Arduinos and building tiny robots.

76:17Yeah, that's a fun memory.

76:19But I did put a hole in the middle of my room.

76:24My parents were always happy with us having projects.

76:27I was going to ask, how did your mom feel about this?

76:29I don't think they were thinking about the future sale value of the house or whatnot.

76:35It actually turned out to be a thing people were interested.

76:38They didn't sell the house, but they used to rent it.

76:39And I was like, well, this is like

76:41strange maybe we'll put like something here and it turned out to be a good decision

76:46but they were very open to us exploring and making mistakes then going back even to

76:52the start of our conversation on how to not get stuck as a big company as a big

76:59team you need to make mistakes and take risks and that's something that was always

77:05encouraged by my parents

77:08That is a hilarious story.

77:09And just to be clear, it's a tatami mat.

77:10It's like a thin mattress, basically.

77:12So a tatami is not something you would sleep on directly, but it's kind of made out of bamboo.

77:18If you Google for just a Japanese house, what they have on the floor is a tatami block.

77:28So they'll put two, three, five, ten together.

77:31So it's kind of like that green floor that you see in many traditional hotels or

77:37for photos.

77:38So I made kind of like a miniature version of that in the newly added second floor of my room.

77:45Sebas, this was everything I was hoping to be.

77:47We covered so much ground.

77:49You, the company, things you've learned.

77:52I feel like we could do another follow-up with just as many insights and lessons and stories.

77:56But other than that, two final questions.

77:59Where can folks find you online if they want to reach out,

78:01learn more,

78:02and how can listeners be useful to you?

78:03Perfect.

78:04I am not so active on Twitter.

78:07I mostly...

78:09Read and find interesting ideas, but happy to see you there.

78:17LinkedIn is another one.

78:18I know some people who are very into X and Twitter actually don't like LinkedIn a

78:23lot,

78:24but I think both work and they're both good.

78:27uh they'll both have have their place uh so yeah happy to connect and feel free to

78:32reach out uh something that i love about the the tech industry uh you can just just

78:38do things just reach out to people and they'll probably help be helpful and and

78:42help you that has certainly been the case with me and i'm also happy to do that for

78:47anyone who has any question or wants to connect

78:51Amazing.

78:52Sebas, thank you so much for being here.

78:53Thank you for hosting me.

78:54It was awesome.

78:55Happy to be here.

78:55It was awesome.

78:57My pleasure.

78:58Bye, everyone.

79:00See you in the next episode.

— A LITTLE MORE TO THINK ABOUT. —