Alibaba's Potential Amazon-Killer Is Getting Bigger

Before even going public in the US, in October of 2013, Alibaba Group Holding Ltd (NYSE: BABA) headed a $206 million investment in ShopRunner, an Amazon.com, Inc. (NASDAQ: AMZN) competitor.

Before that, the Chinese e-commerce giant had invested $70 million into ShopRunner. In 2013, The Wall Street Journal noted the startup was worth about $600 million at the time.

Eighteen months later, ShopRunner remains relatively unknown. However, the company seems to be gaining momentum, and at a fast rate, a Reuters article recently explained.

CEO Scott Thompson (formerly of Yahoo) said in an interview that his company had more than doubled its users over 2014, adding that it hopes to do so again in 2015.

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“The five-year old online retailer's gains may allow it to win over more customers who prize convenience and experience over cost savings, while taking advantage of its Alibaba relationship to help American retailers sell to China's still-growing middle class,” Reuters wrote.

While the site offers some features that are similar to Amazon, Thompson said ShopRunner seeks to be a different experience, where price is not the primary focus.

According to Thompson, users are increasing their spending.

“Cross-shopping, when members who start out buying from one or two retailers evolve to shop from more and more, grew nearly 60 percent in 2014, from just under 20 percent previously,” the outlet added.

While the future is uncertain, ShopRunner seems to be shaping up to play a big role in the expansion of Alipay, Alibaba’s payment system, in the US.