China-based online food ordering platform Ele.me has confirmed an investment by ride hailing company Didi Kuaidi, Tech in Asia reported today, though the companies have not disclosed the sum provided.
Forbes reported the deal two weeks ago, but the shares were only transferred on Tuesday this week.
Founded in 2009, Ele.me’s online platform and app enables users to order food from local restaurants and takeaways for delivery. It had raised about $1.1bn in total funding prior to the Didi Kuaidi investment, securing $630m in August this year at a valuation of more than $3bn.
The deal is emblematic of the increasing links being formed in China’s mobile ecosystem, with the two firms planning to form a unified mobile ordering system people can use to order either food or transport.
Ele.me would also hypothetically be able to increase its delivery range, which currently stands at three miles, by utilising Didi Kuaidi’s driver network. It is perhaps significant that one of the investors in Didi Kuaidi’s biggest rival, Uber China, is Baidu, which is rapidly building out its own food delivery service called Baidu Waimai.
In another link, internet company Tencent is an investor in both Didi Kuaidi and Ele.me, and the latter’s backers also include listings and e-commerce platform Meituan-Dianping, retail group Hualian, e-commerce firm JD.com, Citic Private Equity, China Media Capital, Gopher Asset, Sequoia Capital, GSR Ventures and Matrix Partners.