Taobao has agreed to invest RMB2.81 billion in Beijing Shiji Information Technology Co. Ltd (Shiji Information) who is listed on Shenzhen Stock Exchange (code: 002153), a China-based hotel information technology provider, in return for a 15% stake according to Alibaba Group press release.
As part of the strategic investment, Alibaba Group and Shiji Information will work together to connect the data and systems of Taobao Travel vertical with Shiji Information’s systems to further strengthen Alibaba Group’s capability in the online travel market, including direct connection with hotel information systems, booking-related product development, integration with member services platforms and payment settlement through scannable technology.
Taobao Travel is a vertical within Taobao Marketplace that enables consumers to book air and train tickets, hotels, vacation packages, excursions, and travel visa services; consumers can also access the platform via a dedicated Taobao Travel mobile application.
This investment is part of Alibaba Group’s “live @ Alibaba” vision to diversify the company’s products and services and become central to the everyday lives of consumers.
Shiji Information is primarily engaged in the development and sale of hotel information management system software, system integration and technical service. Its products and services are used by both domestic and foreign high-end hotels in China. Currently almost 6,000 hotels use Shiji Information’s service.