Wal-Mart has plans to invest $50m in China-based online grocery and logistics company New Dada.
Partly owned by JD.com, New Dada delivers in more than 300 cities to over 25 million customers, reported Timesunion.com.
The decision to invest in New Dada is seen a part of the US retailer's strategy to focus more on Asia.
“Our alliance with JD and cooperation with New Dada will enable seamless shopping to millions of customers across China.”
Wal-Mart intends to offer a two-hour delivery service for groceries ordered from its offline stores using New Dada’s network.
The grocery market is immensely competitive, and this investment will help the American retailer to offer faster delivery to consumers.
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By GlobalDataWal-Mart CEO Doug McMillon was quoted by Digitaltrends.com as saying: “Our alliance with JD and cooperation with New Dada will enable seamless shopping to millions of customers across China.”
New Dada CEO Philip Kuai was quoted by Digitaltrends.com as saying: “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.”