Ele.me will also provide support to Koubei through its online home delivery service options.

ASIA–Alibaba has entered into an agreement to purchase all outstanding shares that it does not already own in Ele.me, an online delivery platform in China.

Alibaba, in partnership with its affiliate Ant Small and Micro Financial Services Group, currently owns 43 percent of the outstanding voting shares of Ele.me. The transaction will also value Ele.me at $9.5 billion.

Under the terms of the acquisition, Ele.me will continue to operate as its own brand and will work with its existing partners and merchants. Ele.me will also provide support to Koubei, Alibaba’s affiliated local services platforms, through its online home delivery services.

Meanwhile, Alibaba will provide full support including access to its New Retail infrastructure, product offerings and technology expertise. The acquisition will also advance Alibaba’s New Retail strategy, which aims to provide a seamless online and offline consumer experience across local services.

Finally, following the acquisition, Zhang Xuhao will become chairman of Ele.me and special advisor to Alibaba’s chief executive officer on the company’s New Retail strategy. Wang Lei, current vice president, Alibaba Group, will become chief executive of Ele.me. 

 “We are excited for Ele.me to become a part of the Alibaba ecosystem. Under the leadership of its founder and management team, Ele.me has achieved leading market share in China’s online food delivery and local services sector,” says Daniel Zhang, chief executive officer, Alibaba Group. “Our shared belief that New Retail will create more value for customers and merchants has brought us together. Looking forward, Ele.me can leverage Alibaba’s infrastructure in commerce and find new synergies with Alibaba’s diverse businesses to add further momentum to the New Retail initiative."