Alibaba reportedly mulling over investment in Boxed
Alibaba is said to be in talks about making an investment in the US-based grocery delivery smart phone app provider Boxed. According to a report published today (6 November) by Bloomberg, Alibaba might be looking to invest as much as $80m in Boxed.
Founded in 2013 and based in New York City, Boxed says that it ships bulk grocery orders “everywhere in the contiguous United States” within one to three days. Deliveries are free, provided the buyer meets the $29 order minimum. The company says that 95% of orders qualify for free shipping, but for orders that do not meet the minimum spend, there is a shipping charge of between $5.99 and $9.99.
Unlike competing services Amazon Prime and Costco, Boxed does not charge a membership fee.
Bloomberg said that it spoke to “people familiar with the matter”, but there has been no confirmation from either Alibaba or Boxed. Bloomberg also advised that “the talks may not lead to a deal with Boxed and Alibaba’s investment could be limited to considerably less than $80m”.
