U.S. Markets open in 9 hrs 14 mins

The Alibaba-Tencent Tit-for-Tat Continues

Rachel Gunter
The Alibaba-Tencent Tit-for-Tat Continues

As the tit-for-tat game between Alibaba (BABA) and Tencent (TCEHY) continues, Tencent may have just accidentally made a move that increases the competition with Alibaba. In July, Alibaba won a contract to deliver coffee to Starbucks (SBUX) customers in China through its food delivery unit Ele.me. A month later, Tencent struck its own coffee delivery deal with China’s start-up coffee chain Luckin Coffee. Starbucks dominates the Chinese coffee drink market with an ~80% share compared to 5.2% for Luckin Coffee, according to Euromonitor and China Market Research Group estimates.