Alibaba Acquires Minority Stake In ShopRunner For $75 Million
Alibaba has spent $75 million to buy a minority stake in two-day shipping service ShopRunner, according to The Wall Street Journal. ShopRunner is headed by former Yahoo! CEO Scott Thompson. ShopRunner is known for offering two-day shipping for e-commerce purchases from their partners at a cost of $79 per year. ShopRunner partners include Toys-R-Us, Drugstore.com, and MacMall.
Alibaba has made a couple of large deals recently. The company invested $586 million for Sina Weibo and $294 million for a 28% stake in AutoNavi. Alibaba and their Taobao division are larger than Amazon and eBay combined in terms of gross merchandise volume.
Amazon.com has a service for their own website that offers the same service that ShopRunner does. The Amazon Prime service costs around $79 per year.
Alibaba is preparing to go public and it is likely that a lot of the cash that they raise from that will go towards building a U.S. presence.