Business

Walmart and JD invest $500m into Alibaba delivery rival Dada-JD Daojia

US supermarket giant Walmart and Chinese e-commerce site JD have plugged a further $500m (£388.2m) in funding into Dada-JD Daojia.

The Chinese online grocery and delivery startup is made up of two separate businesses, with Dada running a network of 5m delivery personnel and JD Daojia partnering with retail stores to offer one-hour delivery services.

The company is already partly owned by JD, which provided roughly $180m of the fundraising with the rest coming from Walmart's Chinese arm.

Read more: Google to invest $550m into Chinese e-commerce site JD.com

“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,” said Wern-Yuen Tan, president and chief executive of Walmart China.

Dada-JD Daojia's main rival is Alibaba's Hema, a grocery delivery service which has cut deals with retailers in recent months to combine shopper's online and offline experience.

Alibaba remains China's top e-commerce firm, just above JD. Fellow Chinese tech giant Tencent has also made moves into retail, with the two firms splashing about $10bn in retail deals together so far.

Read more: Starbucks partners with Alibaba in a bid to increase China sales

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