Amazon Invests $20M In Chinese Food Delivery Service Yummy77.
This is the very first time that the U.S. e-commerce giant has managed to invested into a Chinese company. ten years after it first entered into the Chinese market. Amazon disclosed that it will hold a minority stake in Yummy77, which will continue to work on its independent operations after this recent funding.
This funding shall help Yummy77 to enrich their product categories and expand operation beyond Shanghai.
Launched During February 2013, Yummy77 is mainly focused on fresh and gourmet foods, such as a seasonal fruit, fresh seafoods, eggs, meat, dairy products, etc. It’s currently tapping into the growing demand among the urban Chinese residents who wish for high-quality imported foods and swift delivery. The company sales have reported to have exceeded over 100 million yuan (around US$16 million) in December during the previous year and it has registered user reported surpassed over 1 million as of February of this year.
Amazon launched an online fresh food business called Amazon Fresh back in 2007 for the U.S. market. But it does not provide the same service as the one based in China.
It’s also worth pointing out that Yummy77 is the B2C fresh food unit of TRUE, a listed subsidiary of Chia Tai Group.
While it may be one of the global pioneers in the e-commerce industry, Amazon’s performance within the Chinese market has been overshadowed by its Chinese peers. The company’s is putting more focused on becoming highly active within the Chinese market with its launch of the Kindle devices and cloud services AWS in China during the previous year.