Waimai, the food delivery service launched by China-based internet company Baidu, has been acquired by Rajax, the operator of food delivery company Ele.me.
Baidu will own a small stake in the business going forward. The transaction reportedly valued Waimai at approximately $800m, according to TechCrunch, though the company was estimated to be worth as much as $2.5bn last year.
Waimai is expected to continue operations as an independent entity and staff are set to remain with the company.
Baidu said in a statement that it had agreed to a “a business cooperation across a broad base of products and services following completion of the merger” with Ele.me, without providing additional details.
Waimai operates an online platform that allows users to order food from local restaurants and fast food outlets.
The company had raised $70m in a funding round led by restaurant chain Ajisen (China) Holdings’s Ajisen Investments subsidiary, with participation from private equity firm Hina Group in 2015.