Alibaba’s grocery retail chain Freshippo joins Ele.me to expand services

A move to go beyond its own app and stores.

Photo: Shutterstock

Alibaba-owned grocery retail chain Freshippo, known as “Hema” in Chinese, will have its products available through the on-demand service provider Ele.me from this month, 36Kr reported Thursday.

Freshippo runs more than 150 bricks-and-mortar stores in 21 cities across China, with an emphasis on fresh food, as the name implies. Alibabas’supermarket chain is also available to its consumers via its own app, which allows online booking, fast delivery, or self-pickup. Currently, the delivery is only available within three kilometers of a store.

Ele.me, which was fully acquired by Alibaba in 2018, operates thousands of delivery drivers on motorbikes across China, and is one of the main food delivery companies in the country together with Tencent-backed Meituan Dianping.

With the move, Freshippo will have access to a much wider network of delivery operation. The retail chain products will be available on the Ele.me platform, which will coordinate delivery and customized services.

Ele.me generated RMB 6.2 billion (USD 900 million) in the last quarter ended June 30, 2019,  up by 137% year-on-year.

Alibaba did not disclose Freshippo’s revenue specifically.

36Kr is KrASIA’s parent company