Walmart Invests $50M In JD.Com’s O2O Logistics Services App New Dada
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New Dada was created in April from a merger between JD.com’s O2O (online-to-offline) unit and Dada Nexus Ltd., a venture-backed Uber-like mobile app that focuses on providing last mile logistics services.
“Our alliance with JD and cooperation with New Dada will enable seamless shopping to millions of customers across China,” says Walmart CEO, Doug McMillon.
The O2O logistics services provider New Dada currently has more than 25 million registered users, and provides local on-demand delivery capabilities with 2.5 million crowd-sourced deliverers across more than 300 cities in China.
New Dada currently offers customers two-hour delivery on groceries ordered from Walmart stores to customers within a 3-kilometer radius of more than 20 Walmart stores in China. The number of Walmart stores offering two-hour delivery is expected to double by the end of the year.
Officially launched in 2014, Dada operates through Imdada.cn and last completed a US$300 million series D round of financing from DST Global, Sequoia Capital and others in January.
It previously raised three rounds of venture funding from DST Global, Sequoia Capital, Greenwoods Investment Management and other undisclosed investors.
In April, JD.com paid US$200 million in cash and injected JD Daojia assets into Dada in exchange for a 47.4% stake in the newly merged Dada.
Questions & Answers
Q.What is the primary purpose of Walmart's investment in New Dada?
What is the primary purpose of Walmart's investment in New Dada?
The investment aims to deepen Walmart's existing partnership with JD.com, integrating O2O logistics services to enable smooth shopping for customers. It specifically uses New Dada's on-demand delivery capabilities across China.
Q.How many Walmart stores currently offer two-hour grocery delivery through New Dada, and how is this expected to change?
How many Walmart stores currently offer two-hour grocery delivery through New Dada, and how is this expected to change?
Currently, over 20 Walmart stores in China offer two-hour grocery delivery through New Dada. This number is projected to double by the end of the year, expanding the service's reach.
Q.What was the structure of the merger that created New Dada?
What was the structure of the merger that created New Dada?
New Dada was formed in April from the merger of JD.com’s O2O unit and Dada Nexus Ltd. JD.com paid US$200 million cash and injected JD Daojia assets for a 47.4% stake in the newly merged entity.
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