Alibaba CEO Eddie Wu Heads E-Commerce as Growth Slows
By Rediff Money Desk, HONGKONG Dec 20, 2023 10:12
Alibaba's CEO Eddie Wu takes over the core e-commerce business as the company seeks to regain growth amid competition from rivals like Pinduoduo.
Hong Kong, Dec 20 (AP) China's Alibaba Group says its CEO Eddie Wu will head its core e-commerce business, as the company seeks to drive growth and fend off fast-growing online shopping rivals like Pinduoduo.
Wu is replacing Trudy Dai, a longtime Alibaba executive who was one of the founding employees of the company.
Alibaba's chairman Joe Tsai said in an internal letter dated Wednesday that Dai will help set up an asset management company aimed at improving returns on capital and enhance shareholder value.
The reshuffle came after PDD Holdings Inc., which operates online shopping platform Pinduoduo and US-focused e-commerce site Temu, surpassed Alibaba in market value in the past month.
As of Tuesday, PDD's market capitalization of its US-listed stock was USD 199.41 billion. Alibaba's was USD 191.75 billion.
Alibaba founder Jack Ma earlier this month praised PDD for having managed to grow bigger than his Hangzhou-based company, which had for years been China's biggest e-commerce player.
Alibaba needs a brand-new strategy and a change in the firm's organizational principles and systems to a brand new environment, Tsai said in his letter.
Alibaba's Hong Kong-listed stock rose 3.5 per cent in trading Wednesday following the announcement.
The company restructured its businesses in March, splitting them into six units that would eventually raise their own capital and go public. Its cloud unit had been expected to be among the first to hold an initial public offering, but Alibaba later scrapped plans to spin-off the business, citing uncertainties over US export curbs on advanced chips used for artificial intelligence. (AP)
Wu is replacing Trudy Dai, a longtime Alibaba executive who was one of the founding employees of the company.
Alibaba's chairman Joe Tsai said in an internal letter dated Wednesday that Dai will help set up an asset management company aimed at improving returns on capital and enhance shareholder value.
The reshuffle came after PDD Holdings Inc., which operates online shopping platform Pinduoduo and US-focused e-commerce site Temu, surpassed Alibaba in market value in the past month.
As of Tuesday, PDD's market capitalization of its US-listed stock was USD 199.41 billion. Alibaba's was USD 191.75 billion.
Alibaba founder Jack Ma earlier this month praised PDD for having managed to grow bigger than his Hangzhou-based company, which had for years been China's biggest e-commerce player.
Alibaba needs a brand-new strategy and a change in the firm's organizational principles and systems to a brand new environment, Tsai said in his letter.
Alibaba's Hong Kong-listed stock rose 3.5 per cent in trading Wednesday following the announcement.
The company restructured its businesses in March, splitting them into six units that would eventually raise their own capital and go public. Its cloud unit had been expected to be among the first to hold an initial public offering, but Alibaba later scrapped plans to spin-off the business, citing uncertainties over US export curbs on advanced chips used for artificial intelligence. (AP)
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.
TODAY'S MOST TRADED COMPANIES
- Company Name
- Price
- Volume
- Vodafone Idea L
- 17.90 ( -3.35)
- 166585989
- Alstone Textiles
- 0.75 (+ 8.70)
- 47681821
- GTL Infrastructure
- 3.27 (+ 4.81)
- 44040612
- Visagar Financial
- 0.91 (+ 12.35)
- 29755394
- YES Bank Ltd.
- 23.70 (+ 0.77)
- 22163699
MORE NEWS
Piyush Goyal: Govt Committed to Industrial...
Hyderabad, Jun 30 (PTI) Union Commerce Minister Piyush Goyal on Sunday said the...
Piyush Goyal: Govt Committed to Industrial...
Hyderabad, Jun 30 (PTI) Union Commerce Minister Piyush Goyal on Sunday said the...
Indian Economy Growth: Exports, Manufacturing &...
Mumbai, June 30 (PTI) Healthy increase in the country's exports, improvement in the...