Alibaba has definitely made a big scene in making one of the largest IPO ever in US stock market history. But he will have to watch his back now. Following closely behind him is Richard Liu’s JD.com, which is the second biggest online retailer in Beijing, China.
JD.com will proceed to file an IPO in the New York Stock Exchange, just like what Jack Ma did for Alibaba.
With a total net worth of $8 billion, what makes Liu different is that he still retains 84% of the voting rights in his company, unlike Jack Ma, CEO of Alibaba, who has to account to a board of directors. This makes the chase much easier in Liu’s control.
On the difference of the corporation as a whole, JD.com bears high resemblance to the well known Amazon, where they are also able to guarantee next day delivery. The number of the logistics staff in JD.com overshadows the 22,000 staff that Alibaba has for the web-commerce based activities he does.
Alibaba on the other hand, depends on the local standard courier companies available, which has a record for being unreliable. And it’s not just the only reason for Jack Ma to have his fears.
JD.com has made some waves in the e-commerce scene where Liu has tripled his revenue within a two-year frame. That is a total amount of RMB 69.3 billion ($11.2 billion USD). Also, it doesn’t bode well when Alibaba’s arch rival Tencent has a 15 percent stake in JD.com.
With Wechat in the picture, and JD.com working with them on a master plan for future developments, one will wonder how would they fight to provide the best service to the customer.
Liu stated that for high speed growth startups it will be healthier to have a larger span of control. This allows the boss to protect the interest of the investors and provide them with better returns.
We will have to see how will the competition of these two work out – after all like what Liu said, it will benefit both of the companies.