Alibaba and Ant Financial are coming in equal 50 percent partnership for the project Koubei to cater O2O e-commerce.
Latest Alibaba news is regarding the monetization and global presence that the company is looking into this year. There have been many acquisitions and investments by the company in order to enhance the business and also the revenue generation. Ultra-speedy deliveries locally in China and O2O (Online to Offline commerce) are the two main targets for the Chinese e-commerce giant to grow.
At the moment, the Chinese giant has been increasing the commitment highly towards both verticals. The subsidiary, Ant Financial and the parent company announced yesterday that there will be $483.3 million being put by each into Koubei which is the joint venture.
The dining and shopping services will have total investment of one billion approximately, with Ant Financial aiming to provide the tools on platform specifically for merchants. Ant Financial made Alipay which is the biggest mobile payments system in China. Both the companies will have 50 percent equity stake in this joint venture.
There are many e-commerce organizations in China that are on the path of heavily investing in the mobile businesses, the same path has been followed by Alibaba as well. The services pertaining to O2O allow the Chinese giant to get attention of the consumers even if it takes it to enter the brick-and-mortar businesses. For instance, the consumers or buyers can check the discounts on Alibaba’s apps and also for the promotions, and use the Alipay Wallets for the purchases, or order for the local delivery of goods from stores.
Alibaba news reports that there had been couple of investments made by the tech giant to enhance the O2O offerings of it. The investments include Visualead, QR code developer and Intime which is an operator for department store. It has been occupied expanding the logistics network that it has across the entire country so that the next-day deliveries can be possible. However, the project Koubei is considered to be the most formulated and aggressive effort that the company has put forth in order to address O2O and also the hyperlocal e-commerce.
The restaurant delivery business of the Chinese giant, Taodiandian, and other multiple offline merchants for Ant Financial which also include the tools and vending machines for the healthcare retailers shall be coming under Koubei.
The new chief executive officer for Koubei expressed that the resources that currently are possessed by the company allows them to navigate not only the online markets but also the offline ones as well. This project is aimed to structure the synergies between the internet based offerings and also the offline consumption that is going to transform the local market and its services in China.
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