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Retail giants Walmart and JD.com are reportedly investing $500m in the online delivery company Dada-JD Daojia.

Dada-JD Daojia was formed from the merger of JD.com’s online-2-offline (O2O) business JD Daojia with the crowd-sourced delivery company Dada Nexus.

US-based Walmart has taken a strong interest in the Chinese market and has already been working with Dada-JD Daojia on various projects.

According to reports published on Reuters and other sources, JD Daojia has about 20 million monthly active users who uses the company’s app to order delivery from local supermarkets and other partners.

Wern-Yuen Tan, president and CEO of Walmart China, was quoted as saying:  “By working with strong partners, and investing in digital capabilities, we will create easier and more convenient shopping experiences for customers.”