Internet giant Baidu will reportedly sell its meal ordering and delivery services to its rival ele.me.
Citing sources, Caijing have reported that the two sides are in negotiations on a deal. Baidu may continue to hold shares in its delivery service but the proportion is unknown.
The two sides haven’t responded to the report yet.
The news came as Baidu’s meal delivery service failed to reach a deal with one of China’s top parcel delivery services, SF Express.
At the same time, another source from e-commerce giant Alibaba said the company is negotiating to assume full control of ele.me by buying out its shares.
According to reports, Alibaba currently controls about 28-percent of ele.me after an investment worth over 1.2-billion US dollars in 2015.
Recent data suggested that Meituan, ele.me,桃園網頁設計, and Baidu meal delivery are the top three meal delivery services in China, with Meituan taking over 50-percent of the market share.