Google shares ended the US Friday session lower ahead of news the tech giant has entered into a strategic partnership with Asian ecommerce firm, JD.com. The move follows news Sundar Pichai’s firm is expanding its presence in Africa and highlights its ambition for stronger levels of global growth.
Google shares closed 0.07% lower at $1,159.27, in the US Friday. The stock is currently little changed in after-hours activity.
Google’s agreement with JD.com
Asia-Pacific has been identified as an area ripe for investment from US tech firms as consumers’ appetite for tech and online experiences expands.
However, it’s not always easy for non-Asian businesses to successfully penetrate the market there. And that’s why Google has agreed a partnership with JD.com.
“We’re excited to announce a new strategic partnership with JD.com, one of the world’s leading tecommerce companies,” said Karim Temsamani, the President of Google’s Asia-Pacific operarions. “As part of this partnership, we will invest $550 million in JD.com.”
The investment will help improve the online shopping infrastructure and help make that experience more personal and relevant to the growing number of users.
“By applying JD.com’s supply chain and logistics expertise and our technology strengths, we’re going to explore new ways retailers can make shopping effortless for their consumers, giving them the power to shop wherever and however they want,” Temsamani added.
New ecommerce solutions
While JD.com will join Google Shopping as part of the agreement, the two businesses are set to work on creating and delivering new and improved ecommerce offerings for online shoppers. Not just in Asia-Pacific but across all global regions.
“This partnership with Google opens up a broad range of possibilities to offer a superior retail experience to consumers throughout the world,” said JD.com’s Chief Strategy Officer Jianwen Liao.
“This marks an important step in the process of modernizing global retail. As we celebrate our June 18 anniversary sale, this partnership opens a new chapter in our history,” Liao added.