It’s Amazon’s first investment in China and guess what? The lucky winner is the Shanghai-based food delivery service, Yummy77, which will receive $20M from the Seattle-based online retailer to expand its operations.
It’s not the first time that Amazon is doing business in the Middle Kingdom. Last year, it had launched the Amazon Appstore which was then followed by its Kindle. But with this investment, Amazon is “tapping into the growing demand from urban professionals for high-quality imported foods with a quick delivery time,” records ValueWalk.
Even better, it’s a win-win situation. According to GeekWire, the Yummy77 investment “is one way that Amazon can keep an eye on the competition” and “will allow Yummy77 to expand operations, including into new product categories.” So far, the 2013 Shanghai-based company has revenues of around $16 million with one million registered users.
And fortunately, for those of you who fear Amazon’s market imperialism, it’s said that Yummy77 will remain independent.
By Aliaume Leroy