Boston, MA 09/17/2014 (wallstreetpr) – According to reports, JD.Com Inc (ADR)(NASDAQ:JD) has decided to make a hefty investment of $50 million in Chinese food delivery firm named Daojia with the help of Macquarie Capital. JD is a well-known name in Chinese e-commerce industry. The firm has been looking to expand its operations in offline food industry for a long time, and it seems the perfect launch-pad for the company.
Background of Daojia:
Daojia, previously known as Beijing Shishang Renjia Networks Technology Co Ltd. is one of the leading food delivery firm. It has close to one million registered users across eight cities in China. It has partnered with around 3,000 restaurants across the country in order to deliver their food to customers in least possible time.
It’s not the first time when a Chinese e-commerce firm has entered into offline food delivery market. According to reports, other major e-commerce companies like Tencent Holdings Ltd and IPO-bound Alibaba Group Holding Ltd IPO-BABA.N are trying their best to enter into online and offline food market of China. They know the strength of Chinese food market. Customers are increasing very rapidly in Chinese food market; therefore, these companies are trying their best to widen their reach and make full use of available opportunity.
Management Call:
While announcing about this decision of company, Bin Chang, VP of corporate development segment of JD.Com Inc (ADR)(NASDAQ:JD) seemed very pleased. He said that O2O or online to the offline market was the future of the e-commerce industry. According to him, the investment made by JD.Com Inc (ADR)(NASDAQ:JD) in Daojia will prove to be beneficial in the long run. Restaurant delivery sector of China is growing very fast due to changed lifestyle and improved living standard people. Most of the e-commerce companies want to make use of this opportunity in an effective manner. According to a research done by Chinese market research firm Euromonitor, the Chinese food market will cross $156 billion mark by 2018.
