Alibaba-backed Chinese food delivery firm Ele.me will take over the food delivery unit of search engine giant Baidu for US $800 million.
In a short statement announcing the news, Baidu said that Xiaodu is now a subsidiary of Rajax and that Baidu and Rajax had inked “a business cooperation across a broad base of products and services following completion of the merger.”
Ele.me will pay US $200 million in cash and issue US $300 million in shares to Baidu Waimai. In addition, Baidu will contribute resources to drive traffic to Ele.me’s platform in its maps, search engine and mobile apps. The resources are valued at around US $300 million, according to the terms of the deal.
Ele.me has 260 million users in 2,000 Chinese cities served by three million scooter-riding delivery staff, its statement claimed.
In a short statement announcing the news, Baidu said that Xiaodu is now a subsidiary of Rajax and that Baidu and Rajax had inked
a business cooperation across a broad base of products and services following completion of the merger
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