Alibaba's Taobao, Alipay Start Offering Group Buying Service to Rival Pinduoduo

Alibaba's Taobao, Alipay Start Offering Group Buying Service to Rival Pinduoduo

Xu Zuwei & Liao Shumin

Date: Tue, 08/07/2018 - 19:56 / source:Yicai
Alibaba's Taobao, Alipay Start Offering Group Buying Service to Rival Pinduoduo
Alibaba's Taobao, Alipay Start Offering Group Buying Service to Rival Pinduoduo

(Yicai Global) Aug. 7 -- Alibaba Group Holding's e-commerce platform Taobao has joined hands with the parent's third-party platform Alipay to compete with bulk buying service provider Pinduoduo in offering goods to consumers at wholesale prices. 

Alipay's website has included a new button for 'group purchases' through which users can find specific categories of products that other users have initially ordered and join the group to obtain a discount of up to 50 percent, Shanghai Securities News reported.

Bulk-buy services are the latest trend in China's e-commerce scene after Pinduoduo raised USD1.6 billion in its massively successful Nasdaq debut on July 26. The Shanghai-based firm, run by Mengxun Information Technology, has a user base of 344 million active buyers and over one million merchants.

Alipay has 550 million monthly active users and Taobao over 430 million, the Hangzhou-based parent said, which provides easy ways to market new e-commerce services.  

Other online firms JD.Com and grocery retailer MissFresh are also exploring ways to provide services for buying in groups.

Editor: Emmi Laine 

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Keywords: Taobao, Alipay, Group Buying, Pinduoduo, Bulk-Buy, Wholesale, E-COMMERCE