Alibaba Group Holding Ltd (NYSE:BABA)’s CEO Jack Ma was alarmed back in 2004 when eBay Inc (NASDAQ:EBAY) started its operations in China. Ma was worried that eBay Inc (NASDAQ:EBAY) will dominate the Chinese markets. But apart from worries, Ma had a well-defined strategy. Within two years, Alibaba Group Holding Ltd (NYSE:BABA) counted more than 60% of the Chinese online purchases whereas eBay went down to only 20%. Eventually, eBay Inc (NASDAQ:EBAY) had to close its operations in China and now, Alibaba Group Holding Ltd (NYSE:BABA) is the leader in e-commerce in the country.
Ma has got a habit of breaking monopolies. After beating eBay Inc (NASDAQ:EBAY), Ma is now all beefed up to challenge Chinese finance giants and banks that have a well-established customer base. Alibaba Group Holding Ltd (NYSE:BABA)’s CEO has recently established Zhejiang Ant Small and Micro Financial Services Group in China. Zhejiang Ant’s total worth is around $25 billion and it is in the initial stages. It processes the payments at a very large scale, deals in insurance funds and has one of the world’s biggest money market funds. In an article on Economic Times, Neil Gough said that Jack Ma can risk his business by challenging the Chinese finance giants.
Gough quoted Paul Gillis, a professor at the Guanghua School of Management at Peking University, who thinks that Ma is using his political influence to boost Zhejiang, otherwise, he would have been outplayed by famous entities of China’s finance industry.
One of the major advantages for Zhejiang Ant is Alipay, Alibaba Group Holding Ltd (NYSE:BABA)’s payment system. Source claims that Zhejiang Ant processes four times the payment processed by eBay Inc (NASDAQ:EBAY)’s PayPal. Alibaba Group Holding Ltd (NYSE:BABA)’s Ali Pay beats eBay Inc (NASDAQ:EBAY)’s PayPal because of its versatility. Alipay is used in China to pay bills, transfer money, and buy tickets for traveling or movies.
Carl Icahn‘s Icahn Capital LP owns over 30 million shares in eBay Inc (NASDAQ:EBAY).
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