Alibaba Group decides to merge food delivery units

Tue, 16 Jul 2019

Alibaba Group decides to merge food delivery units

By Sheetal Sukhija, Brazil Sun
09 Aug 2018, 06:59 GMT+10

Alibaba Group Holding is believed to be planning to merge its food delivery units
The company's move comes as it tries to raise funds for the combined group
It also wants to place itself in a better position for its battle for market share in China

BEIJING, China - In a bid to be better prepared while engaging in a battle for bigger market share against Meituan-Dianping in China, Alibaba is now believed to be planning to merge its food delivery units.

Currently, Meituan-Dianping and Alibaba are running neck-to-neck in the on-demand market in China - providing everything from food delivery to restaurant reviews.

Now, reports have revealed that Alibaba Group Holding is seeking to battle its regional rival to get a bigger share of China's multibillion-dollar on-demand services industry.

As part of its plans, the company is reportedly looking to merge its food delivery units and raise funds for the combined group - which could be valued at as much as $25 billion.

A report in Reuters stated that Alibaba's food delivery platform Ele.me will merge with its food and lifestyle services arm Koubei.

Hangzhou-based Alibaba acquired Ele.me in April for $9.5 billion, and with its merger plans - it is reportedly looking to raise between $3 billion and $5 billion for the combined entity.

Further, a report in Bloomberg has stated that Japanese conglomerate SoftBank Group Corp's $92 billion Vision Fund will lead the investment in the merged Ele.me and Koubei operation.

Meanwhile, the China Internet Report, co-authored by the Post, Abacus News and 500 Startups revealed that Tencent Holdings-backed Meituan-Dianping, which is currently China's most-funded eCommerce start-up, has drawn over $8 billion in funding.

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Brazil Sun.

More Information

South America

Kiwi ref for Springboks v Wallabies at Ellis Park

Cape Town - New Zealand's Paul Williams will referee Saturday's Rugby Championship Test between the Springboks and Wallabies at Ellis ...

Is Rassie planning to 'Brussow' the All Blacks?

Cape Town - It is still the most fruitful period of consecutive, post-isolation victories for the Springboks over arch-enemies the ...

Vale to Pay $106.5M to Workers Affected by Brazil Dam Disaster

Brazilian mining company Vale SA said on Monday it would pay 400 million reais ($106.52 million) to compensate workers affected ...

Trump Tweets Send Stinging Message to Countless Americans

PHILADELPHIA - When President Donald Trump tweeted that four congresswomen should "go back" where they came from, Erika Almiron was ...

Polls Show Argentine Presidential Race Neck-and-Neck

BUENOS AIRES - Argentina's presidential race looks set to go down to the wire, with the first batch of polls ...

China's Growth Cools Further as Tariff War Pressures Mount

BEIJING - China's economic growth sank to its lowest level in at least 26 years in the quarter ending in ...

Business

Stocks fall, dollar gains in quiet day on Asian markets

SYDNEY, Australia - Stocks skidded in Asia on Tuesday with falsl recorded across the board.The U.S. dollar continued to gain ...

RCSI and Stryker to work together on digital health solutions

DUBLIN, Ireland - Stryker on Monday announced the opening of its Digital Platform Services Centre of Excellence in Dublin, Ireland, ...

U.S. stock markets continue record run

NEW YORK, New York - U.S. stocks began the week with rises across the board on Monday, as the major ...

U.S. president claims reponsibility for slowing GDP growth in China

WASHINGTON, DC - U.S. President Donald Trump says tariffs on China are working by claiming credit for a major slide ...

Chinese and Japanese shares gain ground, greenback dips

SYDNEY, Australia - Stocks in China and Japan advanced on Monday, while in Australia the key index sagged.The U.S. dollar ...

Dubai gearing up for Expo2020

DUBAI, UAE - Planning for Expo 2020 Dubai is on track with construction projects well underway and transport plans being ...

Movie Review

The Firemen's Ball (Hor, m panenko) [DVD]

Firemen's Ball (HorÃ, mÃ¡ panenko) [DVD]