Walmart invests $50 million in Chinese on-demand logistics venture New Dada
by October 21, 2016 11:37 am 259 views
Wal-Mart Stores continues to invest in growing its business in China, doling out another $50 million into New Dada, an on-demand logistics and grocery delivery platform.
The retail giant said this investment is an extension of Walmart’s broader agreement with JD.com that was announced Thursday (Oct. 20). Part of that strategy involved two-hour delivery for groceries ordered and fulfilled from Walmart stores in 20 cities. Shoppers will use New Data’s logistics network for the delivery.
The two-hour delivery service is available to customers within a three-kilometer radius of more than 20 Walmart stores are currently part of the program. The number of Walmart stores offering two-hour delivery is expected to double by the end of the year.
“All around the world, we’re creating seamless shopping experiences that bring together our stores, sites and apps to make shopping faster and easier,” Wal-Mart CEO Doug McMillon stated in a news release. “Our alliance with JD and cooperation with New Dada will enable seamless shopping to millions of customers across China.”
New Dada has more than 25 million registered customers, providing local, on-demand delivery with 2.5 million crowdsourced delivery agents across 300 cities in China. Walmart operates 426 stores in China.
“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, stated in the release. “We look forward to deepening our cooperation with Walmart as China’s O2O retail industry continues to evolve and grow.”