Purpose This paper aims to propose a framework of transformative strategies across the different levels of the service ecosystem for the recovery, well-being and inclusion of Latin American small service firms in the new service marketplace. Design/methodology/approach The viewpoint presents an overview of the transformative strategies that can be developed by ecosystem actors for Latin American small service firms in the new marketplace, due to the pandemic crisis. The data are based on personal research and secondary industry reports. Findings The pandemic crisis has had an unpresented effect on the service industry in Latin America, particularly on small service firms, which are largely informal. This viewpoint provides themes for timely and actionable transformative strategies for the service industry ecosystem in this region and proposes research avenues for service scholars. Research limitations/implications This viewpoint provides implications and ideas for future research on transformative actions for a new services marketplace in Latin America. Originality/value This viewpoint the first to propose transformative ecosystem strategies for recovery, well-being and inclusion of small service firms in the new service marketplace in Latin America.