Alibaba's Taobao Said to Integrate JD Logistics, Biggest Tie-up in 20 Years ...

TMTPost -- Two Chinese e-commerce giants are close to their biggest tie-up in two decades, according to a report Thursday.

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Alibaba Group Holding's core e-commerce platforms Taobao and Tmall will soon officially integrate JD.com’s logistics service, reported Chinese news media outlet LatePost. Once the new logistics service is expected to be launched on Taobao and Tmall in mid-October, merchants will have one more option of JD.com while selecting the delivery method. In the meantime, JD will also accept Cainiao Global Express and Cainiao Stations - the self-operated express delivery brand and parcel collection site of Alibaba’s logisitics arm Cainiao, for delivery on its online marketplace.

LatePost also learned that JD will incorporate Alipay, an online payment operated by Alibaba’s affiliate Ant Group, which is expected to be rolled out as an additional payment method to JD’s platform on the eve of Double 11, or the Singles’ Day, the most important annual online shopping festival in China. Currently, the default payment method ranking for consumers placing orders on JD are as following: JD Pay that offered by JD’s fintech arm, UnionPay’s Cloud Quick Pass, Tencent Holding’s WeChat Pay.

This would be the biggest collaboration in more than 20 years between these two e-commerce giants in China, the reports said. It is also an unsurprising move as Taobao and Tmall began to allow WeChat Pay for purchases, marking leading Chinese tech firms are accelerating teardown of their “walled gardens”.

Earlier this month, Taobao and Tmall Group announced it will provide new payment option through access to WeChat Pay, and the adjustment will be applicable for all the merchants on these platforms. This is the first time for WeChat and Taobao to achieve meaningful "interconnection" since being blocked from each other 11 years ago.

Taobao is committed to improving consumers' shopping experience and is currently inviting merchants to activate the WeChat Pay service in batches, according to the exclusive customer service staff for Taobao 88 VIP members.

"We have always been open to collaborations and have actively explored interoperability and partnerships with our peers," an Alibaba spokesperson told CNBC. "We are constantly working to enhance the user experience by making shopping more convenient, enjoyable, and efficient."

WeChat Pay said that the function adaptation for Taobao platform merchants is under the way, and the following statement will disclose specific launch date. The a mobile payment and digital wallet service by popular social media WeChat said it always adhered to the concept of open cooperation and actively explored interoperability and cooperation with various fields.

Openness, collaboration, innovation and sharing are the basic spirit of the internet and the general trend of industry, said Alipay, the mobile and online payment under Alibaba’s affiliate Ant Group. As WeChat’s main rival and Taobao’s major payment service provider, Alipay vowed to continue further strategic cooperation with Taobao and Tmall Group, increase technological innovation and product innovation and continue to create greater value for merchants and consumers.

Taobao officially started providing payment option of WeChat Pay on Thursday. LatePost learned WeChat Pay is poised to be available for all the merchants on Taobao and Tmall marketplaces by the end of this month, and now more than 90% of them have the access to the payment choice.