+1-888-308-5802     
Industry Categories 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

Pankaj Singh Develops content for Algosonline, Market Size Forecasters, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With experience in technical and niche writing, he was encouraged to opt for a career in content writing and now pens down articles pertaining to market research, industry news and business trends.

He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605

Related News

UK-Texas collaboration to offer new growth prospects in life sciences

Published Date: 2018-09-14         Author: Pankaj Singh

The Texas Medical Center (TMC), which is home to the US’ leading cancer hospital and a total of 61 world leading innovators, will now offer a unique package to UK companies that will help boost innovations in life sciences and drive exports. Supposedly, the partnership will enable research col... Read More

Senvion signs 80MW contract with Heritage Sustainable Energy in U.S.

Published Date: 2018-09-12         Author: Pankaj Singh

Leading manufacturer of onshore and offshore wind turbines, Senvion has recently signed an 80 MW agreement with the Michigan based renewable energy provider Heritage Sustainable Energy, for the supply and delivery of Garden II. The first 20 MW is apparently confirmed, followed by a conditional 60 MW... Read More

Shell to invest $200m on campus for expanding operations in the Hague

Published Date: 2018-09-11         Author: Pankaj Singh

Netherlands based oil giant Shell is reportedly planning to announce a €200m investment in The Hague, to develop a new campus on the site of its current headquarters. Citing reliable sources, the oil company simultaneously wants to create jobs through its New Energies division, which will also ... Read More

© 2018 Fractovia. All Rights Reserved