Alibaba to Offer Logistics Services From Rival JD.com

Dow Jones10-16

Alibaba will allow JD Logistics to provide services on its domestic e-commerce platforms, another step in dismantling the barriers that have long divided China's internet giants.

JD Logistics is now fully integrated into Alibaba's Taobao and Tmall platforms, giving merchants the option to use its services, JD.com said in a statement Wednesday.

Alibaba didn't immediately respond to a request for comment.

China's consumer internet has been dominated by ecosystems built around big companies that blocked services offered by rivals. Merchants previously weren't able to offer JD Logistics as a delivery option when selling on the Taobao and Tmall platforms.

Alibaba's domestic business has faced challenges recently amid a slowdown in the Chinese economy and fierce competition from Temu's Chinese sibling Pinduoduo and ByteDance's short-video platform Douyin.

The primary reason behind the change is that the competition dynamic within the e-commerce industry has changed, said Li Chengdong, head of Beijing-based internet think tank Haitun.

"Douyin and Pinduoduo have become the biggest threats of the e-commerce industry. Alibaba and JD.com are no longer each other's primary competitors," Li said.

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