Alibaba said to be discussing investment in Boxed Wholesale
Alibaba Group Holding Ltd is said to be in talks to invest as much as $80 million in the grocery-ordering smartphone app Boxed Wholesale, according to people with knowledge of the matter, signaling that the Chinese Internet giant wants to expand its reach on Amazon.com Inc's home turf.
Founded in 2013 by CEO Chieh Huang, Boxed is a hybrid of Amazon and Costco Wholesale Corp, offering free delivery within three days on bulk grocery orders of at least $50 made through the company's smartphone app. Shoppers can find a 76.5-ounce box of Kellogg's Raisin Bran for $7.99, 30 rolls of Charmin Ultra Soft toilet paper for $22.39 and 140 kitchen garbage bags for $14.19.
Boxed, based in New York City, has no membership fee, distinguishing it from Amazon's $99 annual Prime membership, which includes delivery discounts and online video and music streaming. Costco charges $55 annually for access to its warehouses stocked with groceries in bulk sizes.
