Alibaba-backed e-commerce platform to exit Myanmar

Shop.com.mm, an online shopping platform operated by the China-based Alibaba Group, will cease operations in Myanmar from April 30. The exit is part of a broader exodus of foreign investment since the current regime, led by the recently self-appointed president Min Aung Hlaing, seized power in 2021. Since 2018, the group has invested US$5 million through Daraz Myanmar Co., Ltd., operating as a fully foreign-owned enterprise. After nearly a decade, it abruptly announced on Monday that it would cease operations. In a statement, the company said it would continue to accept orders until April 29, and promised to handle all ongoing orders, deliveries, returns, and refunds smoothly and responsibly. “We understand this news may come as a sudden and disappointing surprise, and we sincerely appreciate your understanding during this time,” the announcement stated. It did not, however, disclose the reason for the shutdown. A source close to the company told Myanmar Now on condition of anonymity that operations have declined due to supply shortages resulting from import restrictions and losses incurred during inspections. “Recently, the company’s operations have slowed as goods have become less available and prices have risen. Since it operates on a commission basis, it cannot compete with other sellers. That is why this situation has arisen,” he said. Armed conflicts have disrupted the transportation of goods across the country, he added, noting that merchandise is often lost while packages are opened for inspection at checkpoints. He further said that even before the shutdown announcement, the company had been gradually severing ties with shop owners on the Shop.com.mm platform, and that all operations have now fully ceased. He noted that while new local online shopping platforms have emerged, Shop.com.mm, as part of the Alibaba Group, had considerable advantages in operations and strong technological backing. The Daraz Group, the original owner of Shop.com.mm, was founded in Pakistan in 2012. It later expanded across Myanmar, Pakistan, Bangladesh, Sri Lanka, and Nepal, before being fully acquired by the Alibaba Group in 2018. International investment projects in a number of sectors, including manufacturing, telecommunications, and oil and natural gas extraction, have withdrawn from Myanmar since the 2021 coup, due to international sanctions and deteriorating political and economic conditions in the country. Late last year, Chubb, a fully foreign-owned life insurance company headquartered in Zurich, Switzerland, returned its business license to the junta commission, closed its branch office, and withdrew from Myanmar.

Alibaba-backed e-commerce platform to exit Myanmar

Rising prices, shortages due to import restrictions, and loss of goods during inspections were all cited as reasons for the move

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