+1-888-308-5802     
News Contact Us

Alibaba to take on competition by merging food delivery businesses

Author : Pankaj Singh | Published Date : 2018-08-08 

The Chinese e-commerce giant Alibaba Group is considering merging its food delivery units and raising funds for the conjoined entity. Sources claim that the decision is set to intensify the competition between Alibaba and online to offline service platform Meituan Dianping to lead the nation’s growing on-demand service market.

As per credible reports, Alibaba’s food delivery platform Ele.me will be merged with Koubei, its lifestyle service firm. Alibaba is planning to raise between $3 billion to $5 billion for the merged company, which possibly will be valued at $25 billion.

For the record, the merger and its funding are currently looked after by Alibaba’s Hong Kong-based task force. Meituan Dianping is backed by Tencent Group, which is in talks with Google to conjointly launch cloud services in China, claims Bloomberg. According to experts, this may pose a threat to Alibaba Cloud.

Incidentally, these companies are also competing to retain their stance in China’s rapidly growing, online-to-offline market that is remnant of applications to link smartphone users with their stores, so they can offer local food delivery services. In 2017 the value of O2O transactions in China got a 72% boost, claim analysts.

Alibaba and Meituan are the two primary companies that provide extensive O2O services, stated Mo Jia, a research analyst with Canalys. Alibaba’s three units are very similar and merging them to compete with Meituan is a logical decision, Jia added. 

From what sources claim, the fundraiser is expected to be launched by the end of this year, and Alibaba’s Hema Fresh, a supermarket offering food delivery, will also be a part of the new unit.

Reportedly, Didi Chuxing, the nation’s largest ride-hailing firm also launched its own food delivery service in April. According to trusted sources, Meituan Dianping is planning to raise $4 billion when it makes its way to Hong Kong in the coming months.

About Author

Pankaj Singh

Pankaj Singh

Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605

Related News

ByteDance could lose $6 billion following recent TikTok ban in India

Published Date: 2020-07-03         Author: Pankaj Singh

The latest decision taken by the Government of India to ban 59 Chinese smartphone apps is trending worldwide, especially across China. As per a report by China’s Global Times, ByteDance, the parent firm of Helo and TikTok, is likely to incur a loss of about $6 billion after this imposed ban by... Read More

Oyo suspends MGB contracts for property owners due to reduced revenues

Published Date: 2020-07-01         Author: Pankaj Singh

The adverse impact of COVID-19 pandemic is becoming more and more evident across the world. It is being speculated that  nothing of this magnitude has been observed for more than 100 years since the 1918 Spanish Flu pandemic. Till now, over ten million people have been infected in over 200 nati... Read More

Universal Studios postpones the opening of Nintendo-themed area

Published Date: 2020-06-30         Author: Pankaj Singh

The ongoing COVID-19 pandemic has claimed the lives of over half a million people and affected more than ten millions around the world. As the current situation is worsening, many world events as well as the opening of theme parks have been canceled or postponed in order to reduce the spread of the ... Read More

© 2020 Fractovia. All Rights Reserved