China's leading Internet search provider Baidu is set to allow outside investors to help the company build business units that will strengthen its core business, the Economic Observer reported.
According to the report, Baidu's plan, dubbed the "aircraft carrier project," was first unveiled at an investor conference on July 28, in which its food delivery service and software developer, 91 Launcher, were named as candidates for the introduction of outside capital.
The report said that the plan is expected to help Baidu reduce costs, acquire user data and build units that can be spun off for growth and stock listing.
He Haiwen, a senior adviser, said that Baidu can spin off small businesses which do not have enough resources, like customized mobile phone interface developer 91 Launcher, and acquire the resources that the unit needs for further growth.
A similar strategy has been adopted by Baidu for video website iQiyi, and other companies have invested in iQiyi, which included Lenovo's parent company Legend Holdings and handset maker Xiaomi.
Baidu's current expansion into the service sector, through the food delivery service and daily deal website Nuomi, has a similar purpose to the company's investment in Qiyi when it offered important video content for users of its search service.
The report said that although the new businesses could help expand the use of Baidu's payment service and user data, the labor costs are heavy, which led to Baidu's decision to introduce outside investors.
A Baidu executive said that the company's three main online-to-offline (O2O) businesses--food delivery, Nuomi and travel site Qunar--will allow the search engine to get more user data to create a more customized search experience.
Baidu is now set to replicate the success in the mobile era by tapping into artificial intelligence to analyze user data and provide the perfect search results, the paper added.