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Thought on a macroscopic level, e-commerce and online search look to be at different ends of the spectrum, the companies that power these ecosystems are very wary of competition from across the border - both literally and figuratively. Search giant Google is investing in JD.com, the logistics major from China in a well-orchestrated attempt to widen its territory outside the U.S. and into e-commerce.
Google has made an investment of $550 million in JD.com, making it one of the key stakeholders in the company’s fortunes. The e-commerce major valued at $58 billion is in a territorial fight with rival Alibaba, and is known for its ambitious initiatives in warehouse automation, overseeing the introduction of thousands of robots into its supply chain. It also has ventured into working with blockchain, looking to utilize the technology to create more transparency and visibility into its supply chain, as is evident with its participation in BiTA, the largest blockchain consortium of its kind in the transportation and logistics industry.
In a joint release, Google and JD.com have mentioned that they “plan to collaborate on a range of strategic initiatives, including joint development of retail solutions in a range of regions around the world, including Southeast Asia, the U.S., and Europe.” The fusion of Google’s AI and data analytics strength with the precision supply chain ability of JD.com has the potential to power the future of logistics in China and beyond.