E-commerce website Alibaba group holding Ltd is purchasing full ownership of the startup Ele.me and putting all the efforts to expand China’s rapidly enlarging market for food deliveries and other services.
The deal contains enterprise worth of $9.5 billion for Ele.me which is surely a huge investment.
Ma’s Alibaba announced that they have acquired all the shares formally of Ele.me. Prior to the purchase, This e-commerce giant already had 43% of the startup. At that time, Ele.me was also supported by the rivals of Alibaba called “Baidu”.
Ele.me meaning “Hungry Yet?” in Chinese contains delivery personnel that delivers food and provides services on their motorbikes across China. The service receives around 10 million orders every single day. The riders collect the orders from a numbers of stores (almost 1.3 million) and deliver it to the recipients. The stores are very famous food chains like KFC, Starbucks etc. which have more than 250 million users according to their app data.
Alibaba took this decision as the market is on the rush and people are quickly moving to their smartphones to order food, beauty products as well as other services that will help the e-commerce giant of China strategically to promote their respective services as well.
Alibaba purchased Ele.me for a new retail experience to provide their extremely good services on food delivery just like they do in online shopping. Alibaba is also going to provide services for other domains like drugs, and household goods as well.
“As one of the most frequently used applications, food delivery is the single most important entry point in the local services sector. We can already see that a vast, multi-dimensional local instant delivery network formed through a food delivery service will be an essential piece of the commerce infrastructure.”, said Daniel Zhang, the chief executive officer of Alibaba Group Ltd.
According to the latest news, this largest e-commerce website of China is looking forward to make their services vaster and better as Alibaba’s Ele.me is in a fierce battle with their rival Tencent.