Google invests $550m in JD.com

Gladys Abbott
June 19, 2018

Google has invested $550m (£415m) in Chinese Amazon rival JD.com as the United States search giant attempts to extend its presence in Asian markets. With some significant assistance from Google, there is opportunity for JD's expansion into European and U.S. markets. The companies hope to explore retail opportunities together in Southeast Asia, the USA and Europe and certain products will be made available on Google Shopping, according to an announcement released on JD's summer mega sale day, "618" or June 18, the anniversary of the company's founding in 1998. The service displays items at the top of Google's search pages, allowing users to compare prices across different websites.

In this case, it appears that the greatest value within the partnership is the data that Google can bring to help JD.com grow outside of China. As part of the deal, Google will sell JD.com products via Google Shopping.

Similar to how Amazon is the go-to online retailer in the United States, JD.com is China's second-largest website for buying everything from smartphones to soda.

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FILE PHOTO: A logo of JD.com is seen on a helmet of a delivery man in Beijing, China June 16, 2014.

Other JD.com investors include Tencent, its rival Alibaba Group, and Walmart. 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.

With this investment, Google will have less than a 1 percent stake in JD.com, said a spokesman for JD.

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