Walmart invests in Chinese on-demand logistics company
Walmart has invested $50m in New Dada, the Chinese local on-demand logistics and grocery O2O e-commerce platform. The move follows on from Walmart’s broader agreement with JD.com and cooperation with New Dada, which includes using New Dada’s network to offer customers two-hour delivery on groceries ordered from Walmart stores through the JD Daojia Dada app.
The two-hour delivery service is available to customers within a 3km radius of more than 20 Walmart stores that 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.
New Dada a joint venture between JD.com and Dada. The company claims to have more than 25m registered customers and provides local on-demand delivery capabilities with 2.5m crowd-sourced deliverers across more than 300 cities in China.
Walmart has 426 stores in nearly 170 cities in China.
Philip Kuai, CEO of New Dada, commented: “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. We look forward to deepening our cooperation with Walmart as China’s O2O retail industry continues to evolve and grow.”