Chinese messaging app WeChat is likely to get an e-commerce boost as Tencent inks logistics deal

Chinese Internet giant Tencent is making a firm commitment to e-commerce today, with its announcement of a HK$1.5 billion ($195 million) investment in China South City today, a logistics and trade center operator. This hints that Tencent-owned WeChat, a wildly popular messaging service in the country, could see e-commerce becoming a larger part of its future — given that it has already taken a huge step forward in this aspect.

Tencent president Martin Lau says that as Chinese firms seek to expand their businesses online, teaming up with China South City allows the company to “jointly facilitate such enterprises migrating online, utilizing China South City’s physical locations and logistics capabilities, together with Tencent’s Internet user platforms and technology capabilities.”

Tencent’s move comes as its rival, Chinese e-commerce giant Alibaba, recently invested $364 million into electronics manufacturer Haier Group, seeking to extend its logistics and delivery capacity. 

Related: Here’s why a war has started between Chinese Internet giants Tencent and Alibaba

Thumbnail image via Faykwong / Flickr