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Alibaba’s Expansion Continues

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By Published On: April 3, 20180 Comments

Diversification is the name of the game, with this latest acquisition expanding Alibaba's reach further, seamlessly integrating online, offline and delivery across China.

Alibaba has announced that it will buy all outstanding shares of Chinese food delivery service Ele.me. The transaction implies the enterprise value of Ele.me at US$9.5 billion. While Alibaba and its affiliates already own approximately 43 percent of the outstanding voting shares of the company, this acquisition will deepen Ele.me’s integration into the Alibaba ecosystem.

“Under the leadership of its founder and management team, Ele.me has achieved leading market share in China’s online food delivery and local services sector,” said Daniel Zhang, CEO of Alibaba Group. “Our shared belief that New Retail will create more value for customers and merchants has brought us together. Looking forward, Ele.me can leverage Alibaba’s infrastructure in commerce and find new synergies with Alibaba’s diverse businesses to add further momentum to the New Retail initiative.”

Ele.me will build on its current offering of local food delivery to provide consumers with a wider range of products and services on-demand. This is another step in integrating the large delivery force that currently fulfils order across China.

“Our customers, merchants and partners will benefit from our further integration into the Alibaba family,” Zhang Xuhao, founder of Ele.me, explained. “We share the same strategic vision that New Retail has a bright future and being part of Alibaba’s ecosystem will take Ele.me’s growth to a new level.”

In America, Amazon (which Alibaba is compared to regularly) teamed up with online food delivery service Olo last year. Both acquisitions are an example of the way in which fulfilment, delivery, app usage, smartphones, online and offline need to be seamlessly connected in this new age of retail.

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