China-based e-commerce company Alibaba Group is set to buy food delivery platform Ele.me in a deal valued at $9.5 billion, Reuters reported. Read the latest IT news
Alibaba and its affiliate Ant Small and Micro Financial Services Group owns approximately 43 percent share in Ele.me.
This acquisition will advance Alibaba’s New Retail strategy to provide a seamless online and offline consumer experience in the local services sector.
Ele.me complements Koubei, Alibaba’s affiliated local services platform. Alibaba will offer an integrated experience to consumers both online and offline by combining Ele.me’s online home delivery services with Koubei’s consumer acquisition and engagement capability for restaurants and service establishments.
Ele.me will operate in its own brand and work with its existing partners and merchants.
Zhang Xuhao will become chairman of Ele.me and special advisor to Alibaba’s CEO on New Retail strategy. Wang Lei, vice president of Alibaba Group, will become chief executive of Ele.me.