(Yicai Global) Aug. 9 -- Walmart and JD.Com, two of the biggest names in retail globally, will invest USD500 million in Chinese logistics firm Dada-JD Daojia to boost delivery efficiency in the country.

The Shanghai-based firm will deepen its partnerships with leading retail partners following the deal and improve supply chain efficiency through better technology, Chief Executive Philip Kuai said in a statement.

The enterprise was formed in 2016 following a merger between JD's online-to-offline business unit JD Daojia, and Dada Nexus, a delivery platform covering more than 400 major cities across China. JD Daojia mainly partners with retail stores and provides one-hour delivery of groceries, pharmaceutical products with a focus on first and second-tier cities.

Walmart is confident that this deeper collaboration with Dada-JD Daojia will enhance its omnichannel footprint and deliver a better O2O customer experience, said Wern-Yuen Tan, president and chief executive of Walmart China said in a statement.

The investment builds on Dada-JD Daojia's previous cooperation with Walmart. The company provides delivery services for the US firm's membership-only retail warehouse chain Sam's Club in Shanghai and Shenzhen.

Editor: William Clegg