Largest Chinese eCommerce Company, Alibaba Group is ready to invest $1.25 Billion in online food delivery platform Ele.me. With this deal, Alibaba will pick up 27.7 per cent Stake of food delivery Company.
Ele.me is an online food delivery firm, which was founded in 2008 and had raised $1.09 billion as of now. The firm’s investors include Tencent, Sequoia Capital, Alibaba’s rival JD and others. With this round investment, Alibaba will become biggest stakeholder in Ele.me.
Currently, more and more Chinese users are using their smartphones for everything including shopping and booking restaurants. Chinese internet giant Baidu, Tencent and Alibaba are investing in Online to Offline space, so that they can attract more users to their platform. Alibaba had also invested in local consumer service provider firm, Meituan, whereas Baidu has majority of stakes in other O2O company, Nuomi.
Alibaba and Tencent backed O2O firm, Meituan and Dianping had shaken hands in October this year to become the biggest player in the country. Currently, O2O food delivery space is very hot in China, so every company wants to enter the business. All existing tech giant are also looking to make their presence by getting a slice of the pie.