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Alibaba and JD.com Collaborate on Payments and Logistics
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Chinese online giants Alibaba and JD.com are dismantling their walled gardens. By late October, Alibaba’s Taobao and Tmall will integrate JD’s logistics, while JD will accept Alibaba’s Alipay. This move, driven by antitrust pressures and slowing user growth, marks a significant shift in their decades-long rivalry.
The integration aims to align with Beijing’s antitrust directives and could benefit both companies. Taobao and Tmall merchants might switch to JD’s premium logistics, currently a key draw for JD customers. However, JD’s logistics will face stiff competition from cheaper options like ZTO and YTO Express, which dominate the market.
Alibaba’s logistics arm, Cainiao, faces challenges too. Its domestic user base is stagnant, prompting an overseas push. The IPO cancellation earlier this year underscores these difficulties.
The deal could also help Alipay, under pressure from WeChat’s integration into Taobao and Tmall. Overall, the move reflects a broader trend of opening up China’s tech ecosystems, with potential benefits for merchants and consumers alike.
| Scores | Value | Explanation |
|---|---|---|
| Objectivity | 6 | Comprehensive reporting and in-depth analysis. |
| Social Impact | 5 | Significantly influencing public opinion. |
| Credibility | 5 | Solid evidence from authoritative sources. |
| Potential | 6 | Almost inevitably leading to significant changes. |
| Practicality | 5 | Widely applied in practice with good results. |
| Entertainment Value | 2 | Slightly monotonous with a few entertaining elements. |