Biz / Tech

Dada-JD Daojia announces US$500 million investment from Walmart and JD.com

China's leading on-demand logistics delivery platform, Dada-JD Daojia, today announced it has raised a total of US$500 million from Walmart and JD.com. 

At present, approximately 200 Walmart stores in 30 Chinese cities are connected with JD Daojia's delivery network. 

China's leading online grocery delivery platform, Dada-JD Daojia, today announced the completion of its latest round of financing, raising a total of US$500 million from Walmart and JD.com as Internet companies step up efforts to connect with offline retail outlets.  

"Dada-JD Daojia will deepen our partnership with leading retail partners and improve supply chain efficiency through technology upgrades following this new financing," Dada-JD Daojia Founder and CEO Philip Kuai said. "We will continue improving the user experience as we work to fulfill all the on-demand shopping needs of our customers."

Currently it connects with 100,000 retail stores, and provides one-hour delivery of fresh fruit and vegetables, groceries, flowers, baked goods and pharmaceutical products to the homes of users in more than 40 cities across China. 

Walmart said it will invest a further US$320 million in Dada-JD Daojia, which is an extension of a US$50 million investment made in October 2016. Walmart will raise its stake to 10 percent and will also hold a seat on the company's board.

Dada-JD Daojia’s partnership with Walmart dates back to December 2016, when the two companies agreed to explore strategic opportunities in omni-channel e-commerce. Over the past two years, Walmart has made a remarkable breakthrough in online sales with JD Daojia. 

At present, approximately 200 Walmart stores in 30 Chinese cities are connected with JD Daojia's delivery network. 

“By working with strong partners, and investing in digital capabilities, we will create easier and more convenient shopping experiences for customers, and we are confident that this deeper collaboration with Dada-JD Daojia will enhance our omni-channel footprint and deliver a better O2O customer experience,” President and CEO of Walmart China Wern-Yuen Tan said. 

Chief Strategy Officer of JD, Liao Jianwen, said: “JD was an early investor in Dada-JD Daojia, and continues its support, because we believe that its innovations will be an important part of realizing that vision.” 

China's largest e-commerce group, Alibaba, is also stepping up efforts in the online-to-offline delivery realm with the setting up of Hema Fresh Market stores around the country, as well as the acquisition of on-demand delivery service Ele.me earlier this year. 

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