Walmart is looking to strengthen its foothold in China food market with its new $50 million investment.

The retail giant's investment in New Dada, one of the biggest food delivery services in China, is likely to pose a challenge to Alibaba. The report of this investment comes on the heels of Walmart's collaboration with JD.com for delivering groceries within two hours at select stores.

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Meanwhile, Walmart plans to enhance its online sales in China, just like what it is doing in the US. For this purpose, the US retailer is partnering with JD.com.

In June, the company sold its domestic China website to JD.com. Prior to this, in April, JD.com merged its food delivery division with Dada. The resulting entity, New Dada, now acts as a delivery service provider for JD's grocery products.

New Dada will also be responsible for delivering new two-hour initiative launched by Walmart and JD.

The company believes that partnering with JD will help Walmart in serving the market beyond the reach of its more than 400 stores.

The company stated that its alliance with JD and New Dada will help in providing seamless shopping experience to the customers in China.

Walmart has also started exclusive Sam's Club and Global Imports store on JD.com.

New Dada spans more than 300 major cities in China and serves over 500,000 merchants.

The growing collaboration between JD.com and Walmart is expected to provide strong competition to Alibaba, which also plans to expand its food delivery business. 

TagsWalmart, New Dada, JD.com, Alibaba