The spotlight is on Alibaba this week, and its deal to buy out all remaining shares it does not already own in Chinese online delivery platform, Ele.me.
The transaction was estimated to place Ele.me’s market value at USD$9.5bn (£6.86bn), according to Alibaba Group, which said it – along with its subsidiary Ant Financial Services – had held a 43% stake. The two companies had invested USD$1.25bn (£902.24m) in the company in 2016.
Alibaba noted that the deal would provide a boost to its New Retail strategy, melding online and offline consumer experience in the local services industry.
Ele.me specialised in food delivery and would support another Alibaba subsidiary and local online services platform, Koubei. The parent company said the integration of Ele.me’s online home delivery capabilities and Koubei’s restaurant and service offerings would provide a fuller experience for both online and offline consumers.
Following the acquisition, Ele.me would retain its brand and continue to work with existing merchants and partners. Its founder Zhang Xuhao would assume the role of chairman and special advisor to the CEO on new retail strategy.
Alibaba’s vice president Wang Lei would become chief executive of Ele.me, said the Chinese e-commerce giant.
Read more here.
Join us in Miami from the 20th to the 22nd of June for the Global Online Marketplaces Summit. Our summit theme is INNOVATION and we’ll hear from Global Leaders who are creating the Online Marketplaces of Tomorrow.