Alibaba buys a food shipping startup for $9.5 billion deal:
Alibaba buys a food shipping startup for $9.5 billion deal: Alibaba Group, the Chinese e-commerce giant has acquired a food delivery startup, Ele.me to expand in China’s rapidly growing market for the local delivery of food and other services. The deal is worth around enterprise valuation of $9.5 billion for Ele.me.
It must be noted that the same startup has earlier received an investment of $1.2 billion by Alibaba Group and its affiliate Ant Financial before being acquired by the Chinese e-commerce behemoth in full.however, Ele.me became additionally relying on other robust backers which include rival tech giant and search organization Baidu earlier than this deal.
Alibaba is in search of to leverage Ele.me’s transport network in its new retail experiment, which is ready blending bodily retailing with online buying. alongside providing the food delivery offerings, the area wherein startup has its understanding, Alibaba may also be the use of their services for different domain names like drugs, flora, and supermarket items.
Daniel Zhang, the chief executive officer of Alibaba Group, said in an official statement,
“As one of the maximum often used programs, meals shipping is the unmarried maximum important entry point in the nearby offerings sector. we will already see that a giant, multi-dimensional nearby immediate transport network shaped thru a meals shipping provider could be an critical piece of the trade infrastructure.”
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Alibaba is asking ahead to strengthening its own transport community. formerly, the organization improved its stake in its logistics associate Cainiao, while announcing that it is going to be making an investment $15 billion to accumulate warehouses and delivery factors over the next five years.