Dear MEL Topic Readers,
Alibaba hungry for top spot in food delivery market
Founded in 1999 by an iconic ex-English teacher Jack Ma, Alibaba Group is a China’s e-commerce, retail, Internet, AI giant. Its businesses range from C2C, B2C, to B2B, using its Taobao Marketplace (web platform), Alipay (electric payment services), search engines and cloud computing. The famous online shopping bonanza, China’s Singles’ Day, which posted over US$25.4 billion sales on November 11 last year. Alibaba is one of the 10 most valuable public companies in the world.
This e-commerce platformer has been aggressively trying to secure the last-mile access in food delivery business. The market has already grown to over $10.7 billion in China and is still growing rapidly. Over 90% of this market is shared by two giants, Ele.Me and Meituan Dianping. The former has just been announced to be purchased by Alibaba and the latter is backed by Tencent, Alibaba’s archrival. Ele.me was founded in 2008 by two young students in a campus of a prominent university in Shanghai.
Does it sound like business practices in China? Indeed, China’s e-commerce businesses have created world-leading platforms in money transaction and payment like Alipay and WeChat Pay, bike-sharing, and food delivery service. And as those players grow, they compete more hungrily in the capital market.
Enjoy reading and learning this recent capital acquisition in a communist party-ruled country.