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Alibaba Group Holding Limited, branded as Alibaba, is a Chinese multinational technology company specializing in e-commerce, retail, Internet, and technology. Founded on 28 June 1999[1] in Hangzhou, Zhejiang, the company provides consumer-to-consumer (C2C), business-to-consumer (B2C), and business-to-business (B2B) sales services via Chinese and global marketplaces, as well as local consumer, digital media and entertainment, logistics and cloud computing services. It owns and operates a diverse portfolio of companies around the world in numerous business sectors.
On 19 September 2014, Alibaba's initial public offering (IPO) on the New York Stock Exchange raised US$25 billion, giving the company a market value of US$231 billion and, by far, then the largest IPO in world history.[9] It is one of the top 10 most valuable corporations,[10] and is named the 31st-largest public company in the world on the Forbes Global 2000 2020 list.[11] In January 2018, Alibaba became the second Asian company to break the US$500 billion valuation mark, after its competitor Tencent.[12] As of 2022[update], Alibaba has the ninth-highest global brand valuation.[13]
One day I was in San Francisco in a coffee shop, and I was thinking Alibaba is a good name. And then a waitress came, and I said do you know about Alibaba? And she said yes. I said what do you know about Alibaba, and she said 'Open Sesame.' And I said yes, this is the name! Then I went onto the street and found 30 people and asked them, 'Do you know Alibaba'? People from India, people from Germany, people from Tokyo and China... They all knew about Alibaba. Alibaba -- open sesame. Alibaba -- 40 thieves. Alibaba is not a thief. Alibaba is a kind, smart business person, and he helped the village. So...easy to spell, and global know. Alibaba opens sesame for small- to medium-sized companies. We also registered the name AliMama, in case someone wants to marry us![19]
On 28 June 1999,[1] Jack Ma, with 17 friends and students founded Alibaba.com, a China-based B2B marketplace site, in his Hangzhou apartment. In October 1999, Alibaba received a US$25 million investment from Swedish Wallenberg family's Investor AB,[20] Goldman Sachs and SoftBank. In 1999, Wallenbergs Investor AB owned 6% of the shares.[20] Alibaba.com was expected to improve the domestic e-commerce market and perfect an e-commerce platform for Chinese enterprises, especially small and medium-sized enterprises (SMEs), to help export Chinese products to the global market as well as to address World Trade Organization (WTO) challenges. In 2002, Alibaba.com became profitable three years after launch. Ma wanted to improve the global e-commerce system, so from 2003 onward, Alibaba launched Taobao Marketplace, Alipay, Alimama.com, and Lynx.[21][22]
In 1999, Jack Ma launched the primary business of Alibaba, Alibaba.com, while working as an English teacher in Hangzhou. Alibaba.com later became the world's largest online B2B trading platform for small businesses as of 2014.[78] Alibaba.com has three main services: the English language portal Alibaba.com, which handles sales between importers and exporters from more than 240 countries and regions,[79] the Chinese portal 1688.com, which manages domestic B2B trade in China, and AliExpress.com, a global consumer marketplace.[80] Alibaba.com went public at the Hong Kong Stock Exchange in 2007, and was delisted again in 2012.[81] In 2013, 1688.com launched a direct channel that was responsible for $30 million in daily transaction value.[82]
In April 2008, Taobao introduced a spin-off, Taobao Mall (淘宝商城, later Tmall.com), an online retail platform to complement the Taobao C2C portal, offering global brands to an increasingly affluent Chinese consumer base. It became the eighth most visited web site in China as of 2013.[87] In 2012, Tmall.com later changed its Chinese name to Tianmao (天猫, "sky cat"), reflecting Tmall's Chinese pronunciation.[88] In March 2010, Taobao launched the group shopping website Juhuasuan (聚划算), offering "flash sales", which are products that are available at a discount for only a fixed time period. In October 2010, Taobao beta-launched eTao, a comparison shopping website that offers search results from mostly Chinese online shopping platforms,[89] including product searches, sales and coupon searches. According to the Alibaba Group web site, eTao offers products from Amazon China, Dangdang, Gome, Yihaodian, Nike China, and Vancl, as well as Taobao and Tmall.[79] As part of a restructuring of Taobao by Alibaba, these spin-offs became separate companies in 2011, with Tmall and eTao becoming separate businesses in June and Juhuasuan becoming a separate business later in October.[90]
In 2010, Alibaba launched AliExpress.com, an online retail service made up of mostly small Chinese businesses offering products to international online buyers. It is the most visited e-commerce platform in Russia.[91] It allows small businesses in China to sell to customers all over the world, resulting in a wide variety of products. It might be more accurate to compare AliExpress to eBay, though, as sellers are independent; it simply serves as a host for other businesses to sell to consumers.[92] Similar to eBay, sellers on Aliexpress can be either companies or individuals. It connects Chinese businesses directly with buyers. The main difference from Taobao is that it's aimed primarily at international buyers, mainly the US, Russia, Brazil and Spain.[93]
In April 2016, Alibaba announced that it intended to acquire a controlling interest in Lazada by paying $500 million for new shares and buying $500M worth of shares from existing investors.[98] Lazada Group is a Singaporean e-commerce company founded by Rocket Internet in 2011. Lazada operates sites in Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. Its sites launched in March 2012, with a business model of selling inventory to customers from its own warehouses. In 2013 it added a marketplace model that allowed third-party retailers to sell their products through Lazada's site. Lazada features a wide product offering in categories ranging from consumer electronics to household goods, toys, fashion and sports equipment. In March 2018, Alibaba announced its plan to invest an additional $2 billion in the company, totaling a $4 billion investment. Alibaba also plans to appoint Alibaba co-founder Lucy Peng as Lazada's new CEO.[99]In October 2016, Alibaba launched Alitrip, later named Fliggy, an online travel platform that is designed as an online mall for brands such as airline companies and agencies.[100][101] Fliggy set the target audience as the younger generation and it strives to become a one-stop service when they plan their trips, particularly in overseas travel.[102] On 7 August 2017, Alibaba Group and Marriott International hotel group announced a comprehensive strategic co-operation. Two companies will set up a joint venture company. Through the docking technology system and the superiority resources, Fliggy has Marriott hotel flagship store. It has the same function with Marriott Chinese website and Marriott mobile app to create the best global travel experience for consumers.[103]
In 2013, Alibaba and six large Chinese logistics companies (including SF Express) established a company called Cainiao for delivery of packages in China. This network gradually grew to 14 local logistics companies in 2014.[120] In 2016, Alibaba's Taobao and Tmall, two of the world's largest and most popular online retail marketplaces, achieved a total transaction volume of 3 trillion yuan (US$478.6 billion). The company aims to double the transaction volume to 6 trillion yuan by 2020. As of February 2018[update], Taobao reached 580 million monthly active users, while Tmall achieved 500 million monthly active users.[121][122][123] It is also rapidly expanding its e-commerce network abroad.[124] Alibaba has also announced that it will invest 100 billion yuan over five years to build a global logistics network, underpinning an aggressive overseas expansion, and demonstrating Alibaba's commitment to building the most efficient logistics network in China and around the world. It is investing a further 5.3 billion yuan in Cainiao Logistics to boost its stake to 51 percent from 47 percent.[125] The investment would value Cainiao, a joint venture of top Chinese logistics firms, at around US$20 billion.[126]
According to the Reuters, Alibaba Group Holding Ltd has divested its logistics arm for $8.5 billion to a consortium led by investment firms Boyu Capital and Primavera Capital Group. Concurrently, Alibaba intends to repurchase the remaining shares of Cainiao Smart Logistics Network Ltd for $38 billion, aiming for full ownership of its logistics operations. This strategic move reflects Alibaba's commitment to enhancing its logistics capabilities amidst intensifying competition in the e-commerce landscape. By offloading its logistics arm and increasing its stake in Cainiao, Alibaba aims to streamline its supply chain and bolster operational efficiency, ultimately reinforcing its position in the global e-commerce market.[131]
In April 2023, Alibaba revealed its plans to release Tongyi Qianwen, a ChatGPT-like chatbot. Its name means "seeking an answer by asking a thousand questions". This AI product, which can support both English and Chinese languages, will be incorporated into the company's various business operations. It will initially be integrated into the messaging app, DingTalk, and the voice-activated smart speaker, Tmall Genie. According to Alibaba, drafting emails, creating business proposals, and converting meeting dialogues into written notes are among Tongyi Qianwen's capabilities. Media reported that the company has received more than 200,000 requests from businesses to join its beta testing program, from industries as varied as fintech, electronics, transport, fashion and dairy farming as of April 2023.[148] Alibaba is also integrating Tongyi Qianwen into a digital assistant called Tingwu. Tongyi Tingwu, the AI-powered assistant, can analyze multimedia content and generate a text summary from video and audio files.[149]
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