Alibaba To Lead $1B Investment in

Alibaba, China’s largest eCommerce company, and Ant Financial, its financial services arm, are gearing up to invest $1 billion or more in, the Chinese food delivery service.

According to a report, Bloomberg said with the funding, will be valued at between $5.5 billion and $6 billion. The funding is going to help it compete against a service that is backed by Alibaba-competitor Tencent Holdings, also of China, called Meituan Dianping. The market for services provided via a mobile phone, whether to place food delivery orders or book beauty treatments, for example, is booming in China. Bloomberg noted sales of this type of services are forecasted to hit $1.1 trillion in 2017.

The food delivery market in China is attractive to both Alibaba and Tencent because it is one of the retail segments seeing growth. Alibaba is currently the largest shareholder in, and Tencent, which holds a minor stake, is looking to ramp up investment, according to Bloomberg. Alibaba also has its Koubei service, which enables users to book spa treatments and restaurants reservations from their mobile phones.

Alibaba has been in expansion mode as its core eCommerce market in China continues to get saturated. It recently made plans to open up credit services to the Brazil community. On its website, people in the South American country will be able to finance purchases. It’s also been growing its Alipay, mobile payment service and Ali Cloud web hosting service. Back when Alibaba first made the investment in, it said it would fit into its mold of funding in the online-to-offline market. This has also included cab-hailing companies that help connect consumers to services online or via app.



The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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