Beijing Business Today, 8/24/17
Online restaurant takeout delivery platform Ele.me has bought rival Baidu Takeout Delivery, and intends to position Baidu Takeout Delivery as a platform for high-end consumers.
Rajax Information Technology and internet company Baidu (Nasdaq: BIDU), operators of Ele.me and Baidu Takeout Delivery, respectively, announced today that the acquisition has been finalized.
Ele.me stakeholder Alibaba Group (NYSE: BABA) will provide technical support for the acquisition. Baidu Takeout Delivery will be independently operated for the time being, and the company's structure will remain unchanged.
The acquisition of Baidu Takeout Delivery is akin to a partnership in which the two platforms will conduct a dual brand strategy, said Ele.me CEO Zhang Xuhao. There are no plans to lay off employees at Baidu Takeout Delivery, with the platform aimed at the high-end market.
Editor's Note: For more information on this topic, please see "Rumor: Ele.me to Acquire Baidu Takeout Delivery This Week," MD 8/21/17 and "Rumor: Baidu Takeout Delivery, Ele.me Near Agreement on Merger Terms," MD 7/30/17 issues.