Walmart invests $50 million in Chinese online grocery and delivery company

By Harrison Kaminsky October 22, 2016

walmart invests 50 million new dada feat

Following its August acquisition of online shopping marketplace Jet.com for $3.3 billion, Walmart is continuing its push to cement its status among e-commerce elites.

To compete with the likes of Amazon, WalMart Stores Inc. is investing $50 million in Chinese online grocery and delivery company New Dada, the retail giant announced Friday. With the move, Walmart further entrenches itself in China’s economy, the second largest in the world.

It’s also an extension of recent decisions the company has made in the Asian market, according to Reuters.

“Wal-Mart shifted its China strategy earlier this year when it sold its own online platform Yihaodian in exchange for a state in local e-commerce giant JD.com Inc.,” Reuters noted. “New Dada is a joint venture part-owned by JD.com.”

With the New Dada investment, Walmart can utilize New Dada’s network “to offer customers two-hour delivery on groceries ordered from Walmart stores through the JD Daojia Dada app,” a release from Walmart read.

From an additional strategic standpoint, Walmart’s investment in New Dada will help the company target shoppers with “faster delivery times in a popular but fiercely competitive online grocery market. New Dada has over 25 million registered customers and delivers in over 300 Chinese cities,” according to Reuters.

In the release, Walmart CEO Doug McMillon said that globally, the company is working to create seamless shopping experiences that bring together its stores, sites, and apps to make shopping faster and easier.

“Our alliance with JD and cooperation with New Dada will enable seamless shopping to millions of customers across China,” he said.

New Dada CEO Philip Kuai expressed similar sentiments, saying in the release that the deal brings together a global retail leader in Walmart and China’s largest grocery delivery network to create a new unique shopping experience.

“Combining New Dada’s unparalleled delivery network with Walmart stores means consumers will enjoy convenient access to a wide range of high-quality goods delivered to their homes and offices in record time,” he said. “We look forward to deepening our cooperation with Walmart as China’s O2O retail industry continues to evolve and grow.”

Editors' Recommendations

Topics

Harrison Kaminsky

Contributor

Harrison’s obsession in the tech space originated in his father’s electronics store in Denville, New Jersey, where he…

Smart Home

Order groceries online at Walmart, and Uber or Lyft will deliver them to your door

walmart uber lyft grocery delivery online pickup bringing orders to vehicle1

Ride-sharing, home-delivery services, and mega-online grocery shopping are each somewhat disruptive, but what happens when you mash them together? That's what Walmart and Sam's Club want to find out, according to TechCrunch. Walmart is testing multiple responses to Amazon's online shopping and delivery, and is also curbing its bets by expanding customer pickup into more cities.

Walmart is going to test last-mile delivery from its online grocery service. The company will use Uber and Lyft in Denver and Phoenix starting this week or next, with one ride-share company tested in each city. The company is continuing a similar test program it started in March in Miami for general merchandise ordered online from Sam's Club and delivered to homes via Deliv parcel service. There is no premium price on groceries or other goods with home delivery, but customers are charged a delivery fee of from $7 to $10 when they place their orders.

Deals

Semrush Free Trial: Try the advanced online marketing tool

It takes a lot to run a business, let alone start one. There is so much more to establishing an online business than just registering a domain, making a website -- even with a Wix free trial -- and calling it a day. Potential customers must be made aware that your business exists, and for that to happen in the digital age, you need to make use of modern online marketing tools. That's a broad field, though, encompassing keyword research, search engine optimization, data analytics, and other elements that can be pretty technical (not to mention intimidating) to the uninitiated. Enter Semrush, one of the best online marketing suites that makes all that stuff easy -- but it's not free. Maybe you want to give it a try before signing up for a premium subscription? If that's the case and you are looking for a Semrush free trial, then you're in luck. Read on. We have all the details for you, below.

Is there a Semrush free trial?

Business

No W-2s? 2023 is the year of QuickBooks Online

Intuit helping construction business

This content was produced in partnership with Intuit.
For the average employed person, tax season is a relative breeze. Pop in some W-2 information and watch the refunds accumulate. At least that's what it seems like from the outside, for the increasing number of us who make money via freelancing, side hustles, and small businesses. For us, tax season can be a real headache and the endless forms for dozens of income streams can feel like a minefield.

What's worse is that guidance has never been so terrible. Established businesses have tax-prep procedures built up over the years and the resources to hire teams to get the nasty bits done, while millennials – and our younger, Gen Z friends – feel left in the dust. Doing a little Google Sheets data entry and praying that PayPal won't make any mistakes with their new reporting requirement is rough enough. Trying to put this information into unfeeling, computerized boxes that don't always match 1-to-1 with what you are wanting is enough to warrant full-on panic.