TECH - Alibaba and JD.com Engage in Aggressive Price Cutting Intensifying Cloud Services Competition | Benzinga
Alibaba Group Holding Limited (NYSE:BABA) initiated a significant price reduction strategy in the cloud computing services sector, slashing prices by up to 55% on more than 100 services to regain market share in a highly competitive environment.
This move prompted an immediate response from JD.com Inc (NASDAQ:JD), a key competitor in both e-commerce and cloud services, which announced its price cuts on the same day through its WeChat account.
The price war between these tech giants signals an aggressive competition phase, likely to benefit customers but at the expense of the companies’ profits, Bloomberg reports.
Alibaba’s aggressive pricing strategy is part of a broader effort to combat rivals like Tencent Holdings Ltd (OTC: