Alibaba's Incoming CEO: Mobile Take Rate Will Continue To Increase

Alibaba Group Holding Ltd BABA reported better-than-expected quarterly earnings Thursday. Revenue for the company rose 45 percent year-over-year to $2.81 billion, while analysts were expecting the company to report revenue of $2.77 billion.

Additionally, transactions from mobile saw a jump of 27 percent year-over-year and accounted for 51 percent of all transactions.

Daniel Zhang, Alibaba's incoming CEO, was on CNBC following the earnings release to discuss the growth in mobile transactions.

GMV From Mobile Increased

"Actually, we experienced some very solid mobile transition in the past year," Zhang said. "And you can see, actually, in the last quarter, our mobile take rate went down a little bit because of, actually, experience slack season because of Chinese New Year.

"We reported a quarter-over-quarter growth in GMV about 40 percent, while now 51 percent of our revenue of our GMV from mobile."

Related Link: Alibaba Rallies Off Earnings Beat: A Technical Look

He continued, "Internal revenue, we reported 45 percent year-over-year gross and today 40 percent of our GMV of our revenue are from mobile. Twelve months ago only 12 percent of our revenue are from mobile. So, we made substantial progress, and we think we will still continue it in the coming quarters."

The Ultimate Take Rate

Zhang was asked if, as he foresees, the mobile take rate continues to rise, how much farther could it go. He replied, "Today more and more consumers in China are using mobile to do online shopping. So, on the other hand, more and more merchants, they start to spend marketing dollars on the mobile site.

"Based on this, we believe the take rate on the mobile side will continue to increase, and we are confident they can ultimately approach that on PC and even higher," Zhang concluded.

  Image Credit: "2015-03-19 CeBIT 2015l by Olaf Kosinsky-24" by Olaf Kosinsky. Licensed under CC BY-SA 3.0 de via Wikimedia Commons
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