Alibaba is decidedly one of those companies that really love spinning off its businesses from time to time. The ecommerce giant stripped its group buying platform Juhuasuan (translates to “deals aggregator”) to form an independent subsidiary following its spin-off of Taobao into three entities including Taobao (C2C), TMall (B2C) and Etao (price engine) citing “ Alibaba has to be creative in enterprise structure“ and “great changes which have been emerging in the global internet and ecommerce landscape call for the change in Alibaba per se” as motivations for its now and then stripping off.
Now, here it comes again. It’s Alipay’s turn this time. The leading Chinese online payment solution provider announced spun off its loyalty program Jifengbao into a wholly-owned subsidiary of Alipay.
The payment company launched Jifengbao late last December to gain more user traction and reward its loyal customers. You can use the points you earned with Jifengbao as real money on Taobao marketplace and Taobao mall or pay your credit carl bill and so on.
Jin Xiandong, CFO and VP of Alipay said that the spin-off highlighted that the Hangzhou-based company has attached much importance to the business and will be investing heavily into the new subsidiary as it grows.