(Source: Panoramic Vision)
Economic Observer Online reporter Feng Qingyan Internal reporter Ren Hang On August 24, 2017 Hungry CEO Zhang Xuhao published an open letter stating that he was hungry and officially merged Baidu take-out. Baidu take-out kept the existing brand and the organizational structure independent of operations and the personnel structure including management remained unchanged.
A year later, on August 23, 2018, Alibaba issued a financial report that revealed that Ali will establish a new holding company that will hold two big companies out of hunger and word-of-mouth, the executive chairman of the new holding will Alibaba Group CEO Zhang Yong are simultaneously. At the same time, the company has independently funded and received an investment commitment of USD 3 billion, including Ali and Softbank.
Reuters had previously issued a statement stating that Alibaba would merge with word-of-mouth and would go hungry, raising $ 3 billion to $ 5 billion, and the combined company would have a $ 25 billion valuation.
Alibaba's latest financial report revealed that the sale of hungry people has increased by 40%, and the one-day transaction volume of Shanghai has exceeded 100 million yuan. In April Alibaba worked with Ant Financial to buy Hungry for $ 9.5 billion, and on August 2 it was hungry to update its stock information. The legal representative was changed from Zhang Xuhao to Alibaba Group, Vice President Wang Lei, Zhang Xuhao still as CEO, and at the same time served as the special assistant of the heart retail strategy of Zhang Yong, CEO of Alibaba Group.
This financial report also revealed that Honggry and Word of Mouth, despite the establishment of a holding company, continued to operate independently, from the "home" and "to the store", two scenarios to join forces to promote accelerate new retail upgrades in the local lifestyle service market.
In the conference call after the publication of the financial report, Zhang Yong said that Ali in the field of local services will not only invest money, but will also invest in resources such as technology to help word of mouth and hunger a significant market share and position on the local market. At the same time, the large-scale real-time distribution network that is hungry will also react chemically with Ali's new retail business, Ali is working hard to integrate this network to increase the viscosity of the Ali economy and improve the efficiency of long-term operations.
Alibaba CFO Wu Wei said in a conference call that investing in local service areas and the integration of word-of-mouth and hunger will have an impact on Ali's financial situation, leading to a slowdown in the Group's recent earnings growth. After this investment the EBITA may be comparable to the previous quarter, from which we can see how much we invest in this strategic area. Although these investments will lower our profit levels, these companies will achieve greater operational leverage. "As soon as they increase in size, we are confident that we will achieve profitability in the future."
Cai Chongxin, executive vice president of Alibaba, said: "This company (the hunger and word-of-mouth after the merger) gets more investment funds from external investors."