Google joins JD.com's current investors, including Chinese social media giant Tencent and US.
JD.com and Google have announced that Google will invest $550 million in cash into China's largest retailer as part of a strategic partnership. This could help JD.com expand beyond its base in China and Southeast Asia and establish a meaningful presence in USA and European markets.
The partnership not only lets Google bolster its retail ambitions in China but also allows it to further tighten its relationship with Walmart. With some significant assistance from Google, there is opportunity for JD's expansion into European and United States markets.
FILE PHOTO: A logo of JD.com is seen on a helmet of a delivery man in Beijing, China June 16, 2014.More news: Department of Justice releases report on Clinton email server investigation
JD.com said earlier this year that it planned to make its US debut in the second half of 2018, posing a new challenge for Amazon.
The goal here is to merge JD.com's experience and technology in supply chain and logistics - in China, it has opened warehouses that use robots rather than workers - with Google's customer reach, data and marketing to produce new kinds of online retail.
Google said that through the partnership, the company will explore new solutions to improve shopping experiences of consumers around the world.
Although Google is blocked in JD's homeland and main market, China, the partnership recognizes the technical prowess of the U.S. tech giant and hopes to merge it with JD's supply chain and logistics skills and scale.