Walmart commits $50m to JD.com's delivery platform

The deal came after Walmart sold its own China online platform Yihaodian in exchange for a 5% stake in JD.com, the country's second-largest e-commerce player after Alibaba Group.

The latest investment is an extension of Walmart's broader cooperation with JD.com and New Nada. Through the JD Daojia Dada app, customers can have groceries delivered within two hours from 20 Walmart stores in China, with New Dada handling the delivery. The number of stores offering this service is expected to double by the end of the year.

JD.com initially operated its own online-to-offline delivery platform JD Daojia, primarily offering food delivery services. The platform previously raised several rounds of funding from investors including Macquarie Capital and Morningside Ventures. In April, JD Daojia merged with Dada Nexus, a crowdsourced delivery platform backed by Sequoia Capital and DST Global, and they subsequently formed New Dada. JD.com acquired a 47.4% stake in the new company for $200 million. 

New Dada has more than 25 million registered customers, with 2.5 million crowd-sourced deliveries across more than 300 cities in China. Walmart has 426 stores in nearly 170 Chinese cities.

"Combining New Dada's unparalleled delivery network with Walmart stores means consumers will enjoy convenient access to a wide range of high-quality goods delivered to their homes and offices in record time," Philip Kuai, CEO of New Dada, said in a statement.

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• Topics
• Greater China
• Consumer
• Support services
• Technology
• Expansion
• China
• JD.com
• TMT
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• Growth capital
• Venture