Alibaba has announced that it has merged two of its food delivery services Ele.me and Koubei into the Alibaba Local Services Company.

According to CEO of Alibaba Group Daniel Zhang statement on October 12, the company represents a significant milestone for Alibaba’s attempt to reach consumers, The Paper reports. Following “new retail,” local services have become another highlight in Alibaba’s ecosystem strategy.

In August, Alibaba confirmed that it has invested $3 billion in the company along with Softbank. According to an earlier Reuters report, Alibaba is looking to raise between $3 billion and $5 billion for the entity which could be valued at up to $25 billion. Alibaba did not confirm these plans.

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Masha Borak

Masha Borak is a technology reporter based in Beijing. Write to her at masha.borak [at] technode.com. Pitches with the word "disruptive" will be ignored. Read a good book - learn some more adjectives.