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:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Tech Results

Reuters Showcase

IBM Chip Unit

IBM Chip Unit

IBM to pay Globalfoundries $1.5 bln to take chip unit  Full Article 

Cost-Cutting

Cost-Cutting

Yahoo set to outline cost-cutting efforts - WSJ.  Full Article 

eBay Board

eBay Board

Marc Andreessen quits eBay board ahead of PayPal spinoff  Full Article 

Cyber Security

Cyber Security

Wall Street urges U.S. regulators' joint cybersecurity approach  Full Article 

Facebook Stake

Facebook Stake

Fidelity Contrafund loads up on Facebook and it pays off  Full Article 

App for Kids

App for Kids

New apps bring kids' playtime back to real world  Full Article 

'Robotic Eyes'

'Robotic Eyes'

Helps Japan's bipedal bot run faster.  Video 

Reuters India Mobile

Reuters India Mobile

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