Mobile Commerce Daily – Retail behemoth Walmart has invested $50 million into local Chinese logistics and grocery delivery platform New Dada in a move that will proliferate the company’s reach overseas and help corner mobile delivery.
The investment is a continuation of a larger partnership with Chinese electronic commerce company JD.com and New Dada, and will give all 25 million users on New Dada’s network access to two-hour grocery delivery from Walmart via the JD Daojia Dada app. The maneuver is part of Walmart’s long-term global growth plan and will act as a case study in the variety of mobile infrastructure that will be necessary for expansion into foreign markets.
“As Walmart perfects the platform and process for 2-hour grocery delivery in China, it will make it easier for it to expand this service to other international markets,” said David Naumann, vice president of marketing at Boston Retail Partners.
And when looking at relevant mobile use statistics, it looks as though the Chinese consumer is more than ready to leverage this partnership.
“Chinese online users are more frequent users of smartphones than U.S. online users and they spend more time per day on their smartphones,” Mr. Naumann said. “The pervasive use of smartphones and mobile apps in China probably played a role in the strategic investment in the Dada local on-demand logistics platform.
“Consumers rely on their smartphones for most of their Internet usage and retailers need to make sure everything is mobile friendly.”
Read full article: Walmart looks to dominate overseas with grocery-delivery app investment