$500m Investd By JD And Walmart Into Dada-JD Daojia

Photo by Walmart via Flickr

Walmart, the supermarket giant of the United States of America,  and JD, a Chinese e-commerce site, have invested an additional $500 million (£388.2 million) worth of funding into Dada-JD Daojia. The fund was raised from the company’s latest round of financing.

The online grocery and delivery startup that is based in China is made up of two separate businesses. Dada is running a network of 5 million delivery staff while JD Daojia is partnering with various retail stores in order to offer one-hour delivery services.

JD Daojia delivers goods coming from local supermarkets and its other partner establishment thru a location-based smartphone app and has approximately 20 million monthly active users.

The firm is already partly owned by JD, which provided approximately $180 million of the fundraising with the rest of the funds coming from the Chinese arm of Walmart.

In a statement, the president and chief executive of Walmart China, Wern-Yuen Tan, stated: “We are confident that this deeper collaboration with Dada-JD Daojia will enhance our omni-channel footprint and deliver a better online to offline customer experience.”

He added: “By working with strong partners, and investing in digital capabilities, we will create easier and more convenient shopping experiences for customers.”

According to the Chinese firm, Walmart first partnered with Dada-JD Daojia way back in 2016.

Earlier in the year, the U.S. retailer launched its first small high-tech supermarket in China where the customers make use of smartphones to pay for items that are available on the virtual store of Walmart on the platform of JD Daojia.

Alibaba’s Hema, is the main rival of Dada-JD Daojia. It is a grocery delivery service which has cut deals with retailers during the past months in order to combine the online and offline experience of shoppers.

Alibaba continues to be the top e-commerce company in China, just above JD. Tencent, its fellow Chinese tech giant, has also made some moves into retail, with the two companies splashing approximately $10 billion in retail deals together, so far.