Walmart and JD.com have invested $500m into online grocery delivery firm Dada-JD Daojia.
The app uses location to deliver goods from local supermarkets and has over 20 million users.
According to Walmart, the move is part of an ongoing investment into digital which will enhance the convenience of shopping for consumers.
Dada-JD Daojia, a company formed via a merger of JD’s online-to-offline business JD Daojia and crowdsourcing delivery service Dada Nexus, first partnered with Walmart in 2016, according to CNBC. Earlier this year, Walmart opened a high tech store, using Dada-JD Daojia technology to link its products with customers in a small shop concept.
Walmart also has had a longstanding relationship with JD.com, in which it entered into an agreement with in 2016, with Walmart selling its Yihaodian business in return for a stake in JD.com.
JD.com has since partnered with Walmart to launch the Asda brand into China, to capitalise on the Chinese appetite for imported products. This particular deal shut down a wider plan that Walmart had to launch across China, instead its strategy has been investing heavily in innovation and technology through JD.com.
Walmart is not the only American company with its money invested into JD.com, as Google announced a major $550m cash injection and plans to partner on ‘next generation retail’ services across Southeast Asia, the US and Europe.