Hangzhou, China, – Alibaba Group (NYSE:BABA) announced that Taobao (China) Software Co., Ltd., a subsidiary of Alibaba Group, has agreed to invest RMB2.81 billion in Beijing Shiji Information Technology Co. Ltd (Shiji Information) (Shenzhen Stock Exchange stock code: 002153), a China-based hotel information technology provider, in return for a 15% stake. After completion of the transaction, Alibaba Group will have one board seat on the board of directors of Shiji Information. The investment is subject to customary closing conditions. As part of the strategic investment, Alibaba Group and Shiji Information will work together to connect the systems of Taobao Travel vertical with Shiji Information’s systems, with the aim to continue to strengthen Alibaba Group’s service capability in the online travel market.
Taobao Travel is a vertical within Taobao Marketplace that enables consumers to book air and train tickets, hotels, vacation packages, excursions, and travel visa services; consumers can also access the platform via a dedicated Taobao Travel mobile application. This investment is part of Alibaba Group’s “live @ Alibaba” vision to diversify the company’s products and services and become central to the everyday lives of consumers. It will also bolster Alibaba Group’s online travel market service capabilities through the two companies’ collaboration in data and systems.
Shiji Information is primarily engaged in the development and sale of hotel information management system software, system integration and technical service. Its products and services are used by both domestic and foreign high-end hotels in China. Currently almost 6,000 hotels use Shiji Information’s service.
As part of this strategic investment, Taobao Travel and Shiji Information are expected to focus their collaboration on hotel information systems, including direct connection with hotel information systems, booking-related product development, integration with member services platforms and payment settlement through scannable technology.
About Alibaba Group
Alibaba Group’s mission is to make it easy to do business anywhere. The company is the largest online and mobile commerce company in the world in terms of gross merchandise volume. Founded in 1999, the company provides the fundamental technology infrastructure and marketing reach to help businesses leverage the power of the Internet to establish an online presence and conduct commerce with hundreds of millions of consumers and other businesses.
Alibaba Group’s major businesses include:
Taobao Marketplace (www.taobao.com), China’s largest online shopping destination
Tmall.com (www.tmall.com), China’s largest third-party platform for brands and retailers
Juhuasuan (www.juhuasuan.com), China’s most popular online group buying marketplace
AliExpress (www.aliexpress.com), a global online marketplace for consumers to buy directly from China
Alibaba.com (www.alibaba.com), China’s largest global online wholesale platform for small businesses
1688.com (www.1688.com), a leading online wholesale marketplace in China
Alibaba Cloud Computing (www.aliyun.com), a provider of cloud computing services to businesses and entrepreneurs
Alibaba Group also provides payment and escrow services on its marketplaces through its contractual arrangements with Alipay (www.alipay.com), a related company of Alibaba Group.
Through China Smart Logistics, a 48%-owned affiliate, Alibaba Group operates a central logistics information system that connects a network of express delivery companies in China.
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