Google invests $550 million in Chinese e-commerce giant JD.com

Google just invested a whopping $550 million in the Chinese e-commerce company, JD.com. This move is seen by observers as a vital partnership between the two internet firms. Google has been looking to widen its presence in China for years and this investment is seen as a giant leap forward in that direction.

JD.com, valued at approximately $60 billion, is China’s second largest e-commerce company, trailing behind Alibaba. The aim of this investment is to combine JD.com’s experience and technology in supply chain logistics and Google’s customer outreach, data and marketing to innovate new techniques in online retail.

JD.com, listed in NASDAQ, operates warehouses that use robots rather than human workers. In the global race to achieve the maximum possible automation in production, distribution and logistics, Google’s investment comes as a move to achieve a head start in automating various aspects of business. JD.com leads the world in delivery through AI, drones, robots as well as autonomous technology. Additionally, it has the world’s largest infrastructure and capability for drone delivery. It should come as no surprise that the Chinese e-commerce titan has strategic partnerships with retail behemoths like Walmart, who have their own interests in automated warehouse technology as well as advanced retail and logistics.

It is also interesting to note that Google has partnerships with JD.com arch rival, Alibaba.