Taobao double revenue this year

Taobao posted its first profit before interest, tax, depreciation and amortization last year.

Alibaba last year said it would invest 5 billion yuan in Taobao over five years to add functions and services. Taobao was established in 2003 and in less than three years overtook EBay Inc.?s China unit to become the market-leader by keeping services free.

Ads currently account for about 70 percent of revenue, with commissions on transactions at its retail site that offers products from Dell Inc. and Fast Retailing Co. and other value-added services making up the remainder, Lu said.

Taobao had 86.8 percent of China?s online c2c market in the second quarter, compared with 7.9 percent for second-ranked Paipai, according to researcher Analysys International.

The Web site had almost 145 million registered users at end-June, who purchased 80.9 billion yuan of goods during the first half, according to Alibaba.

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