China’s internet giant Baidu is selling its food delivery service Baidu Waimai to rival Ele.me, backed by Alibaba. The two top players in the takeout delivery service sector have reached a deal and more details will be announced as soon as this week (in Chinese), local media are reporting.

Rumors of the merger have been circulating for a while, and local media revealed this week with unnamed sources that the deal is about to finalize. Local financial magazine Caijing reported that the merger is valued at around $500 million (in Chinese) and is funded by a combination of cash and equity.

As part of the deal, Baidu Waimai will continue to operate as an independent entity for a year, and the brand name can still be put in use by Ele.me for 18 months, according to China Business News.

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Timmy Shen

Timmy Shen is a technology reporter based in Beijing. He's passionate about photography, education, food and all things tech. Send tips and feedback to timmyshen@technode.com or follow him on twitter at...