With all the new rapid investments in different businesses, we are now confused about what the e-commerce website, Alibaba is actually up to.
According to the latest news, the famous e-commerce giant, Alibaba is preparing to invest in a cab service called Grab.
It has been reported that the deal of investment between the two is currently in the early stages. Alibaba and Grab had a conversation over an investment last year too, but no decision was made as the e-commerce giant was more interested in Tokopedia, an Indonesian e-commerce startup. At that time, Tokopedia was also being eyed by Tencent, Alibaba’s rival.
The investment deal with Tokopedia was obviously prioritized by Alibaba Group Holding Ltd. because its arch-rival, Tencent was also willing to invest in the same startup in Indonesia as it owns the largest economy in South Asia. Both the companies agreed to partner up and Alibaba readily invested $1.1 billion in Tokopedia.
It should be noted that Alibaba has been in alliance with SoftBank since a long time, and one condition that SoftBank attached to the deal with Tokopedia was that the Chinese e-commerce giant would sooner or later invest in Grab.
Hence, this lead the largest e-commerce giant of Asia, Alibaba to build interest in Grab once again and invest in it.
Previously, Alibaba had been in talks with Pakistani site Daraz to acquire it.
Prior to the investment in Grab, it was reported that Alibaba has been in talks with the Pakistani e-commerce website, Daraz owned by Rocket Internet, a German based company.
Jack Ma, the CEO of Alibaba Group Holding Ltd. said that he was impressed by the rapidly growing economy of Pakistan and was willing to work with Daraz. The business deal was still the its early stages back then, and there is no further update over this news.