Walmart (WMT) and online Chinese retailer JD.com (JD) are jointly investing $500 million in a Chinese grocery delivery company, deepening the big-box retailer's commitment to the nation and to mobile consumers.
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The U.S. retail giant said it contributed around $320 million toward the investment in the grocery delivery company, Dada-JD Daojia. That followed a $50 million investment from Walmart in 2016.
Dada-JD Daojia already serves 200 Walmart stores in 30 Chinese cities. The grocery delivery company was the product of a merger between delivery company Dada Nexus and JD.com's online-to-offline business, according to CNBC.
"By working with strong partners, and investing in digital capabilities, we will create easier and more convenient shopping experiences for customers," Walmart China CEO Wern-Yuen Tan said in a statement, according to CNBC.
Shares were down 0.9% at 89.21 in the stock market today.
Advances In China
In 2016, Walmart boosted its stake in JD.com to 10.8%. The U.S. retail chain earlier this year also began using Tencent Holdings' (TCEHY) WeChat for mobile payments, abandoning Alibaba's (BABA) Alipay. Tencent is also a big investor in JD.com.
Tencent gapped 3% higher on Thursday. Alibaba picked up 1%.
Meanwhile, in the U.S., Walmart has expanded its grocery-delivery services to compete with rivals like Kroger (KR) and Amazon (AMZN). Walmart has raced to reshape itself as a tech and e-commerce company amid changes in how people shop.
The chain's Jet.com e-commerce unit last month announced same-day grocery deliveries in New York City. The retailer has also teamed with deliverer DoorDash in Atlanta. And it has teamed up with Postmates in Los Angeles.
Earlier this year, Walmart said that a grocery- and home delivery-related trademark, "Wam! by Walmart," was related to "ongoing projects." The company wants to bring online grocery service to 40% of Americans by the end of this year.
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The post Walmart Extends Reach In China With This Latest Big Investment appeared first on Investor's Business Daily.
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