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 Corps $92 billion Vision Fund will lead the investment in the merged Ele.me and Koubei operation.

Meanwhile, the China Internet Report,co-authored by thePost, Abacus Newsand 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

30 ℃

Brasilia

South America

Section

EMCDDA: Ireland has one of EU's highest prevalences of cocaine use

DUBLIN, Ireland - Revealing the shocking rise in the use of cocaine across Ireland, a study conducted by the European ...

Mass shooting at Brazilian cathedral leaves four dead

CAMPINOS, Brazil - A gunman opened fire in the Metropolitan Cathedral of Campinas, Brazil at the end of mass on ...

Leaders of Leftist Latin American Regional Group Meet in Cuba

The leaders of a regional Latin American and Caribbean block of leftist governments met in Cuba's capital, Havana, Friday with ...

US in 'no hurry' for negotiations with N Korea, says Trump

Washington D.C [USA], Dec 15(ANI): United States President Donald Trump on Friday said that the US is in 'no hurry' ...

UN Predicts More Than 5 Million Will Flee Venezuela by End of 2019

The United Nations predicted Friday that 5.3 million Venezuelans will have left the South American country by the end of ...

Emergency plan for refugees and migrants from Venezuela launched

Joint UNHCR/IOM Press Release Faced with the largest population outflow in Latin America of recent years, 95 organizations covering 16 ...

Business

Section

Movie Review

Canoa: A Shameful Memory [Blu-ray]

Featured story

Ireland's Keywords Studios acquires Canada's Snowed In

DUBLIN, Ireland - Following its successful acquisition of Hollywood-based Blindlight, Irish video-gaming company Keywords Studios has now announced its latest accomplishment. Keywords r ...