China's JD.com takes aim at Alibaba with Paipai relaunch

BEIJING Thu Jul 17, 2014 5:44pm IST

Richard Liu, CEO and founder of China's e-commerce company JD.com, rides an electric tricycle as he leaves a delivery station to deliver goods for customers to celebrate the anniversary of the founding of the company, in Beijing, June 16, 2014. REUTERS/Jason Lee/Files

Richard Liu, CEO and founder of China's e-commerce company JD.com, rides an electric tricycle as he leaves a delivery station to deliver goods for customers to celebrate the anniversary of the founding of the company, in Beijing, June 16, 2014.

Credit: Reuters/Jason Lee/Files

Related Topics

Stocks

   

BEIJING (Reuters) - Chinese e-tailer JD.com (JD.O) on Thursday relaunched its Paipai online marketplace, opening a new front in its escalating battle against the country's e-commerce market leader Alibaba Group Holding IPO-ALIB.N.

Paipai's relaunch marks the first time that JD.com, the No.2 player by market share, has directly taken on Alibaba's core e-commerce offering, Taobao. Paipai and Taobao both provide an online marketplaces for consumers and small businesses to sell goods to one another.

Alibaba, which is preparing for a potentially record-breaking initial public offering (IPO) in New York this summer, said in its investor prospectus that gross merchandise volume on Taobao reached $48 billion during the March quarter.

JD.com acquired Paipai in March as part of a sweeping $215 million deal with Tencent Holdings (0700.HK) that effectively aligned the two companies against Alibaba.

JD.com on Thursday said that it had incorporated its own search algorithms and delivery infrastructure into Paipai and would keep advertising rates low to lure new sellers.

The company, which is expected to receive a boost in the mobile market thanks to its alliance with Tencent, raised $1.78 billion in a May IPO in New York but remains unprofitable.

(Reporting by Beijing newsroom; Editing by David Goodman)

FILED UNDER:

REUTERS SHOWCASE

SpiceJet Bail-Out

SpiceJet Bail-Out

Co-founder of SpiceJet seeks time to finalise rescue  Full Article 

Regulating Airfares

Regulating Airfares

India considers temporary cap on airfares - government official  Full Article 

Ten Years On

Ten Years On

British tsunami brothers use funky footwear to help children.  Full Article 

Fund Raising

Fund Raising

Xiaomi raising over $1 bln from investors including GIC - source.  Full Article 

Porn Crackdown

Porn Crackdown

China arrests thousands in porn, gambling crackdown - Xinhua.  Full Article 

India v Australia

India v Australia

Boxing Day test of India's resolve in Melbourne.  Full Article | Related Story 

Jaycee Charged

Jaycee Charged

China charges Jackie Chan's son over drug offence.  Full Article 

China on Cyberattacks

China on Cyberattacks

China condemns cyberattacks, but does not mention North Korea.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device   Full Coverage