Walmart formed a strategic partnership with Meituan, a Chinese tech company that offers a platform for various services including food delivery, hotel and travel booking, and bike-sharing, to help accelerate its e-commerce business in China.
E-commerce accounts for nearly half of Walmart's sales in China. In comparison, e-commerce only represents around 8.2% of its total US revenue.
Through the deal, Meituan will begin providing delivery services for Walmart goods, and Walmart will be featured on its app.
The partnership follows Walmart's sale of a stake in JD.com for $3.7B in August, allowing the company to diversify beyond JD's logistics services.
Walmart reported last month that quarterly net sales in China from both Walmart and Sam’s Club stores surged 17% to $4.9B. As of October, Walmart had 273 Walmart locations and 49 members-only Sam’s Club stores, which have been popular among Chinese middle-class families.
Meituan posted a 22.4% jump in third-quarter revenue to around 94 billion yuan ($12.9B).