US based Walmart and China based JD.com are set to invest $500 million in Chinese online grocery delivery company Dada-JD Daojia, the company formed through the merger between JD Daojia and Dada Nexus. JD Daojia is JD.com’s online to offline business while Dada Nexus is a large crowd sourcing delivery platform in China which has operations in more than 400 major cities. JD Daojia has about 20 million monthly active users and delivers goods from local supermarkets via a location based smartphone app.
According to Wern-Yuen Tan, president and CEO of Walmart China:
“By working with strong partners, and investing in digital capabilities, we will create easier and more convenient shopping experiences for customers.”
According to Chinese company, Walmart partnered in 2016 with Dada-JD Daojia. Walmart opened its first small high tech supermarket in China where customers use smartphones to pay for items that are found in Walmart’s virtual store on JD Daojia’s platform.
Backed by Google and Tencent, JD.com competes with Alibaba in China. Tencent also operates WeChat and JD.com aims to sell directly through the WeChat app domestically as well as internationally.
Despite US and China trade tensions recently, JD.com is aiming to make a selection of items available for sale in US and Europe through Google Shopping to sell to customers outside China.
Operating as an e-commerce company in China, JD.com operates in two main segments: JD Mall and New Businesses. JD.com sells mobile handsets, consumer electronics products, and auto parts and accessories; home appliances; and general merchandise products directly to customers while it also provides an online marketplace for third- party sellers to sell products through its website and mobile application. Based in China, JD.com employs around 137975 employees.
Tencent Holdings is a Chinese investment holding company that provides Internet and mobile value-added services (VAS), and online advertising services in Mainland China, the United States, Europe, and internationally.
Tencent Holdings Limited was founded in 1998 and is headquartered in Shenzhen, China.
Founded in 1945, Walmart engages in the retail and wholesale operations worldwide. Headquartered in the US, Walmart operates supercenters, supermarkets, hypermarkets, warehouse clubs, cash and carry stores, discount stores, drugstores, and convenience stores; membership-only warehouse clubs; e-commerce Websites, such as walmart.com, jet.com, hayneedle.com, shoes.com, moosejaw.com, modcloth.com, bonobos.com, and samsclub.com; and mobile commerce and voice-activated commerce applications. Walmart employs around 2300000 employees worldwide.