Alibaba and Ten­cent ex­tend their web bat­tle to gas sta­tion

The Pak Banker - - 6BUSINESS -

China's two largest In­ter­net com­pa­nies have teamed up with the coun­try's oil and gas gi­ants to take their bat­tle from the web to the fuel sta­tion.

Alibaba Group Hold­ing Ltd. and its part­ners agreed to arm China's big­gest oil and gas pro­ducer China Na­tional Pe­tro­leum Corp. with its full set of In­ter­net-based ser­vices. That fol­lows ri­val Ten­cent Hold­ings Ltd. se­cur­ing a stake in China's big­gest fuel pro­ducer and dis­trib­u­tor.

Alibaba's deal -- span­ning col­lab­o­ra­tions on cloud com­put­ing, mo­bile pay­ments and on­line fi­nance -- will help the ecom­merce em­po­rium tap into CNPC's net­work of 20,000 fuel sta­tions.

Ten­cent in Au­gust 2014 teamed up with China Pe­tro­leum & Chem­i­cal Corp., which owns more than 30,000 fuel sta­tions around the coun­try, to work to­gether in ar­eas in­clud­ing mo­bile pay­ments and me­dia mar­ket­ing.

"Alibaba and Ten­cent are both try­ing to boost us­age of their pay­ments ser­vices via th­ese deals," Marie Sun, a Shen­zhen-based an­a­lyst at Morn­ingstar In­vest­ment Ser­vice, said by phone.

"Th­ese state-owned com­pa­nies have mas­sive chan­nels and many out­lets."

The ri­valry be­tween Jack Ma, co-founder of Alibaba, and Ten­cent's Pony Ma spans more than a decade as both com­pa­nies ex­panded from their ini­tial web­based shop­ping and so­cial me­dia bases to on­line pay­ment and lo­ca­tion-based ser­vices.

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