×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: alibaba | food | delivery | app | ele.me | china

Alibaba Buys Delivery Startup Ele.me in $9.5 Billion Deal

Alibaba Buys Delivery Startup Ele.me in $9.5 Billion Deal
(Mohamed Ahmed Soliman | Dreamstime)

Monday, 02 April 2018 07:06 AM EDT

Chinese e-commerce giant Alibaba Group Holding Ltd. said on Monday it would buy the remaining shares of Ele.me, a major platform in China's food delivery market, as it competes with Tencent Holdings Ltd services for offline consumers.

Alibaba and affiliate Ant Small & Micro Financial Services Group currently own approximately 43 percent of Ele.me, and the latest deal will value the startup a $9.5 billion, said Alibaba in a statement.

Ele.me, which roughly translates as "Hungry?," is part of a fast-growing and competitive e-commerce market in China driven by consumers eager to use smartphones to make purchases from groceries to cinema tickets.

In August Ele.me bought major rival Baidu deliveries from Baidu Inc. For Alibaba, the latest acquisition enlarges the e-commerce firm's food delivery empire, which also includes delivery platform Koubei, as it competes with Meituan Dianping, backed by Tencent Holdings Ltd.

Alibaba and Meituan are both investing heavily in offline services, including deliveries, mobile payments and unstaffed stores, to tap a wider demographic as China's online commerce market shows signs of slowing.

Ele.me will continue to operate under its own brand following the acquisition, said Alibaba, but will combine some functionalities with Koubei.

As part of the deal Alibaba will install Alibaba Vice President Wang Lei as chief executive at Ele.me, while the current chief executive and founder of Ele.me will become chairman and serve as a special advisor to Alibaba on new retail strategies. 

© 2022 Thomson/Reuters. All rights reserved.


Companies
Alibaba and affiliate Ant Small & Micro Financial Services Group currently own approximately 43 percent of Ele.me, and the latest deal will value the startup a $9.5 billion, said Alibaba in a statement.
alibaba, food, delivery, app, ele.me, china
236
2018-06-02
Monday, 02 April 2018 07:06 AM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved