Latest
Recommended
Published: Tue, June 19, 2018
Economy | By Melissa Porter

Google makes $550M strategic investment in Chinese e-commerce firm JD.com

Google makes $550M strategic investment in Chinese e-commerce firm JD.com

JD is up 5.76% this year.

JD.com's USA -listed shares rose 0.4 percent to close at $43.76 on Nasdaq.

- Google said Monday that it will invest $550 million in Alibaba's main rival JD.com as the US tech giant seeks to expand in fast-growing Asian e-commerce markets.

The goal here is to merge JD.com's experience and technology in supply chain and logistics - in China, it has opened warehouses that use robots rather than workers - with Google's customer reach, data and marketing to produce new kinds of online retail.

In March, Reuters reported a new program where Google was teaming up with retailers like Walmart, allowing them to list their products on Google Search, as well as on the Google Express shopping service to better compete with Amazon. Google is also thought to benefit from JD.com's initiatives into voice-powered shopping.

"The announcement isn't focused on China", JD.com spokesman Josh Gartner confirmed to AFP.

Morningstar analyst Chelsey Tam said the investment will help JD.com expand into developed markets such as the United States and Europe, where it has lesser exposure compared to Google.

Google has made investments in China, released products there and opened up offices that include an AI hub, but now it is working with JD.com largely outside of China.

Although Google is blocked in JD's homeland and main market, China, the partnership recognizes the technical prowess of the United States tech giant and hopes to merge it with JD's supply chain and logistics skills and scale.

Like this: