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May 13, 2015

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Healthcare goods delivered in 3 hours

CHINESE online shopping giant Alibaba Group Holding Ltd is rolling out a three-hour delivery service for healthcare goods, mimicking rival JD.com Inc.

The service will launch in five cities, including Beijing and Shanghai, and grow to 19 by the end of 2015, Alibaba said yesterday.

Products beyond healthcare will be added in the future.

It works through a partnership with five pharmacy chains that sell goods via stores on Alibaba's Tmall.com website.

The service, called ‘Ji Su Da’ or “fast delivery” links shoppers who buy eligible products to the nearest of more than 1,500 drugstores.

Cainiao, an Alibaba affiliate operated in partnership with various logistics firms, collects and delivers the order.

Alibaba’s biggest e-commerce challenger is JD.com, which is built on strong logistics networks and speedy delivery similar to Amazon.com Inc.

Wary of that prowess when it comes to distribution, Alibaba and its partners have spent recent years building out Cainiao in an effort to compete.

Ji Su Da is part of a broader trend to bring online various offline services from flagging a taxi to finding nearby restaurant deals. Known as “online to offline,” this often uses a smartphone to find someone’s location and the nearest service provider.

“This service is ideal for consumers who need non-prescription drugs and other healthcare products quickly,” said Xu Hui, head of Cainiao Ji Su Da. “This service effectively mobilizes resources at both online and offline stores.”




 

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