Alibaba reveals yet another plan for the Chinese market

Alibaba Partners up with Ant Financials to Tap into China’s Local Services

Alibaba and Ant Financials are looking forward to be a part of China’s booming local service market.

Alibaba Group Holding Ltd is doing incredibly well in the market and they are using this momentum to dive into other ventures as well. Last week, it was revealed that Alibaba has plans to come up with its own streaming service and today, it has been reported that Alibaba along with its affiliate ‘Ant Financial’ is looking to invest almost $1 billion to tap into China’s local service market, starting with food delivery.

Local services of China are called online-to-offline (O2O), and they have been doing pretty well in the country. This online system is linked to the apps that can be used for hailing taxis and can also be used to gain information about both online and offline businesses in China.

This helps the Chinese community to use their mobile phones for almost everything. They can do their shopping, book restaurants, order food, etc.

Alibaba and Ant Financials are now looking to be a part of these services as well. In the beginning, they plan to introduce food delivery options for the consumers, but soon after, they plan on expanding their business.

There’s no questioning the fact that China is a huge market and with the resources that both Alibaba and Ant Financial possess, surely they will be able to come up with something new and unique for the consumers.

 

Image Courtesy: openmarkets.cmegroup.com

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