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JD.Com Announces Its JD Daojia Will Merge With China's Largest Crowd-sourcing Delivery Platform

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China-based eCommerce giant JD.Com Inc(ADR) (NASDAQ: JD) announced on Friday that its O2O business, JD Daojia, will merge with Dada Nexus Limited, the country's largest crowdsourcing delivery platform.

The newly formed company will continue operating as a crowdsourcing delivery platform under the Dada brand. The new company will now be better equipped to provide low-cost delivery services to Chian's retailers, service providers and O2O enterprises with increased efficiences.

JD.com will own approximately 47.4 percent of the new company's equity in exchange for the JD Daojia business, various resource support and $200 million in cash.

The deal is expected to close in the second quarter of 2016.

"This merger is a win-win cooperation and an important step forward in building a sustainable O2O ecosystem," said Richard Liu, CEO of JD.com. "JD Daojia and Dada's business are highly complementary, with the companies sharing a deep commitment to providing fast delivery service and excellent user experience. I am confident that the new company will continue to innovate and increase efficiencies, which will help to improve quality of life for consumers throughout China."

"Dada is delighted to enter into this strategic cooperation, which marks a new phase of our business that will leverage our respective strengths to achieve greater efficiencies," said Philip Kuai, CEO of Dada. "We are grateful for the tremendous support that JD.com is providing, which will help drive the integration between JD.com's premium brand, user base and supply chain, and Dada's strength in delivery crowdsourcing. We are excited to further enhance product innovation and deliver a better and faster O2O service experience for users."

 

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Posted-In: China eCommerce Dada Nexus Limited JD Daojia JD.com Philip Kuai Richard LiuM&A News

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