Alibaba Takes Control of Food Delivery Startup Ele.me

Executive Summary

• Alibaba announced on April 2 that it will acquire Shanghai-based online delivery and local services platform Ele.me in a transaction that values the company at US$9.5 billion.
• Alibaba will integrate Ele.me into its existing infrastructure to bring new synergies and add further momentum to its New Retail initiative.
• The acquisition of Ele.me will allow the company to leverage Alibaba’s resources to compete with Meituan Dianping, its major rival in the online food delivery market.