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3 Reasons You Should Fear This Chinese E-Commerce Giant

By Kevin Chen - Apr 16, 2013 at 5:30PM

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Alibaba's takes on search with Aliyun and uses e-commerce power to beat Baidu, Google, and Qihoo.

Get ready for another huge upheaval in China's search market:  China's e-commerce giant Alibaba has launched Aliyun, or Alibaba Cloud Search.

Though the new search engine offers four seemingly simple searches -- across web, news, images, and maps -- Fool contributor Kevin Chen discusses three reasons why this move should frighten investors in Google (GOOGL -1.34%), Baidu (BIDU -0.69%), and Qihoo (QIHU.DL)

  • First, Alibaba has a long history of dabbling in search. Since Yahoo!'s investment into China's e-commerce giant, Alibaba has managed the search function on Yahoo!'s China website.
  • Second, Alibaba owns 40% of the e-commerce market (for comparison Dangdang owns just 1.6%) and has used its market share to help shut down Google Shopping, Google's search engine for products.
  • Third, new CEO Jonathan Lu seems like he will make mobile -- including mobile search -- a big priority for Alibaba. 

Putting the pieces together, Alibaba seems like it can and will do anything to make sure its new search engine crushes Google, Baidu, and Qihoo. To learn more about Alibaba's new venture, click on the video now.

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Stocks Mentioned

Alphabet Inc. Stock Quote
Alphabet Inc.
GOOGL
$2,178.16 (-1.34%) $-29.52
Baidu, Inc. Stock Quote
Baidu, Inc.
BIDU
$124.47 (-0.69%) $0.87
Qihoo 360 Technology Co. Ltd. Stock Quote
Qihoo 360 Technology Co. Ltd.
QIHU.DL
E-Commerce China Dangdang Inc. Stock Quote
E-Commerce China Dangdang Inc.
DANG

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