Google will invest $550 million in JD.com as part of its efforts to expand into the Asian eCommerce market.
In Monday’s press release, Google announced a new strategic partnership with JD.com and an investment.
President of Google’s Asia-Pacific Operations, Karim Temsamani, said:
“We want to accelerate how retail ecosystems deliver consumer experiences that are helpful, personalized and offer high quality service in a range of countries around the world, including in Southeast Asia. By applying JD.com’s supply chain and logistics expertise and our technology strengths, we’re going to explore new ways retailers can make shopping effortless for their consumers, giving them the power to shop wherever and however they want.
“As part of our partnership, JD.com will also join Google Shopping and bring a selection of their high-quality products to consumers in multiple regions around the world.
“We’re thrilled to partner with JD.com to explore new opportunities to make online shopping even easier for consumers around the world".
According to Reuters, JD.com’s U.S.-listed shares rose 0.4% to close at $43.76 on Nasdaq on Monday. Under the agreements, Google will receive 27,106,948 newly issued JD.com Class A ordinary shares.
Google is blocked in China due to its refusal to censor search results that break the local laws, therefore the partnership will not yet involve any new Google initiatives.
The partnership with JD.com will allow Google to strengthen its existing relationship with Walmart, and challenge rivals Amazon and Alibaba in key markets around the world, say analysts.
JD.com’s Chief Strategy Officer Jianwen Liao said of the partnership:
“[It will open] up a broad range of possibilities to offer a superior retail experience to consumers throughout the world.
“This marks an important step in the process of modernizing global retail. As we celebrate our June 18 anniversary sale, this partnership opens a new chapter in our history”
Google is also reportedly in talks to buy a stake in India’s Flipkart however declined to comment on the rumoured deal.