Alibaba has acquired a minority stake in ShopRunner, an online media outlet. Alibaba is paying USD 75 million for the stake in ShopRunner, run by former Yahoo Chief Executive Scott Thompson. The investment will add to a long relationship between Alibaba and Yahoo.
Shoprunner is a subscription-based service that provides Amazon Prime-like free two-day shipping to shoppers. The business model is straightforward: the company takes the $79 fee, and uses part of it to provide subsidized shipping for the retailers. Eventually, Shoprunner could create new revenue streams from the information they collect on the consumers who use the service. Shoprunner captures information on every transaction completed.