Walmart, JD.com invest US$500 million in Chinese logistics service
Investment in logistics provider Dada-JD Daojia intensifies ‘smart retail’ movement in China, where tech giants such as Alibaba and Tencent cut deals to combine shoppers’ online and offline experience
Logistics services company Dada-JD Daojia has raised US$500 million from existing backers JD.com and Walmart to quicken the growth of its delivery network across China.
The firm comprises two businesses and is partly owned by JD.com. Dada operates a network of 5 million delivery men, while JD Daojia partners with retail stores and provides one-hour delivery services of groceries and other items.
Walmart said it invested about US$320 million in the logistics services company’s latest fundraising. The Arkansas-based retail giant’s partnership with Dada-JD Daojia dates back to 2016 when it invested US$50 million, the company said.
“We are confident that this deeper collaboration with Dada-JD Daojia will enhance our omnichannel footprint and deliver a better O2O (online to offline) customer experience,” said Tan Wern-yuen, the president and chief executive at Walmart China.
The global retail giant has been pushing to integrate its retail network in China with the country’s burgeoning “smart retail” movement, as retailers and tech giants such as Alibaba Group Holding and Tencent Holdings cut deals to combine shoppers’ online and offline experience.