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Business · TMT · Resident Services sees growth potential in second-hand smartphone, invests USD 500 mln in Aihuishou
2019/06/06 04:28:24
1,989, secondhand phones, used smartphones, aihuishou

Jun 06, 2019 (China Knowledge) - Chinese online e-commerce giant,, in a bid to reap profits from the used smartphone market amid a maturing digital landscape, spent USD 500 mln to purchase an undisclosed stake in Aihuishou, a platform for recycling used smartphones.

Aihuishou features both online and offline experience to recycle smartphones. Apart from featuring a mobile application, Aihuishou manages about 300 physical locations throughout Mainland China. Aihuishou will pay smartphone owners for their used phones and subsequently resells these phones after cleaning and testing them. did not disclose the specific amount of stake held but the e-commerce giant will be the leading shareholder of Aihuishou.

Apart from second-hand app Aihuishou, has Paipai secondhand, a flea-market app within the group as well. Investment in Aishuishou will further strengthen Paipai’s extensive lineup of secondhand consumer electronics, apparel, and other hardware.

However, there are also views that the online second-hand trading market is currently very competitive. Strong competitors include Xianyu of Alibaba Group Holding, and the Zhuangzhuang of This is not surprising since the e-commerce market growth has faced slowdown.

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