Walmart To Invest $50 Mln In Logistics & O2O Grocery Platform New Dada, China

(RTTNews) - Walmart (WMT) said that it will invest $50 million in New Dada, China's largest local on-demand logistics and grocery O2O ecommerce platform. The investment is an extension of Walmart's broader agreement with JD.com and cooperation with New Dada, which includes using New Dada's network to offer customers two-hour delivery on groceries ordered from Walmart stores through the JD Daojia Dada app.

The two-hour delivery service is available to customers within a 3km radius of more than 20 Walmart stores that are currently part of the program. The number of Walmart stores offering two hour delivery is expected to double by the end of the year.

New Dada an independent joint venture of JD.com and Dada, boasts more than 25 million registered customers and provides local on-demand delivery capabilities with 2.5M crowd-sourced deliverers across more than 300 cities in China. Walmart has 426 stores in nearly 170 cities.

News of the investment comes a day after Walmart and JD.com announced their collaboration on three new services -- exclusive Sam's Club and Global Imports stores on JD.com, and two-hour grocery delivery through New Dada.