Amazon fights, Alibaba rises
China’s e-commerce giant just invested in a postal company
For the past week, Amazon, the e-commerce “everything store” has been locked in a battle with publishing giant Hachette over the pricing of books — once again. In 2010, it fought five other publishing houses over the pricing of e-books. Vox has a good summary of what’s been going on.
Meanwhile, Alibaba, China’s e-commerce giant — a mash-up of Amazon and eBay — has been preparing for an IPO in the United States. It is set to raise $1 billion, though analysts say the number it brings in will be closer to $15 billion. According to Marketplace, the company could be valued at $200 billion.
As it raises money, it is also spending. Alibaba has been investing in companies — both in China and abroad.
Yesterday, Alibaba invested $249 million (a 10 percent stake) in Singpost, Singapore’s postal agency. In April, the company invested in AutoNavi, a Chinese mapping company. Last year the company invested in the U.S.-based ShopRunner. The New York Times ran this story about how Alibaba is luring Americans with a new marketplace, 11 Main.
All these acquisitions are clearly a play to bolster Alibaba’s logistics capabilities and global reach. It will be interesting to see where the company’s focus will turn to once it has both in place. Wherever it is, Alibaba is growing into a formidable competitor to Amazon. Watch this space.