Alibaba, the giant Chinese online retailer, is to invest RMB100 billion ($15.2 billion) over the next five years to further strengthen its global logistics network so that it can fulfil orders in China within 24 hours and worldwide within 72 hours.
It is spending RMB 5.3 billion ($807m) to increase its stake in Cainiao Smart Logistics Network to from 47 per cent to 51 per cent.
Cainiao operates a logistics data platform that leverages the capacity and capabilities of logistics partners to fulfil transactions between merchants and consumers at a large scale. It also uses data insights and technology to improve efficiency across the logistics value chain.
The additional investment of RMB100 billion (US$15.2 billion) over the next five years will be used to increase R&D in logistics data technology, as well as for development of smart warehousing, smart delivery and global logistics infrastructure, all of which are core to building the global logistics network of the future.
“Our goal with this investment is to provide comprehensive, first-class experience for consumers globally,” said Daniel Zhang, CEO of Alibaba Group.
“Our commitment to Cainiao and additional investment in logistics demonstrate Alibaba’s commitment to building the most-efficient logistic network in China and around the world. By enhancing the logistics capabilities within the Alibaba ecosystem and extending our investment in this sector, we are further enabling our New Retail strategy to bring online and offline retail into one seamless experience for shoppers. We will also continue to deepen our collaboration with various logistics partners to achieve this goal.”