Alibaba Increased its Holdings in Cainiao Network

Alibaba group announced today that in order to further promote the new retail strategy, it will increase holdings of Cainiao Network. Apart from tens of billions CNY it has invested, over the next five years, Alibaba will continue to invest 100 billion yuan in Cainiao, so as to accelerate the construction of logistics network and to realize the goal that deliver goods in China within 24 hours and globally within 72 hours, which further reduces China’s social logistics cost.

Under the agreement, Alibaba will invest 5.3 billion yuan in Cainiao Network. After the investment, Cainiao shares held by Alibaba will increase from 47% to 51% and Alibaba’s board seats also increase by one, accounting for four of total seven seats.

Alibaba said that the 100 billion yuan will be put in R&D of data technology as well as constructing core fields including intelligent warehouse, intelligent deliverry, global super logistics hub and others with Alibaba’s partners. As for constructing logistics network, Alibaba has its emphasis and second-emphasis, aiming to serve customers and to improve logistics efficiency.

Zhang Yong, the CEO of Alibaba group, said: “the increased holding of Cainiao and the continuous investment in the logistics sector reflect Alibaba‘s determination to provide customers with the best logistics experience. Along with the advancement of new retail strategy, Alibaba will strengthen business and logistics capability and increase investment in key areas of logistics, so as to build efficient logistics network for China and the world as a whole.”

Cainiao Network in recent years has invested key nodes and has built millions of square meters of intelligent warehouse logistics infrastructures. Through cooperating with logistics partners, Cainiao has formed a global intelligent warehouse delivery network. In addition, Cainiao and its partners have jointly built intelligent delivery facilities like super robot warehouses and intelligent logistics nodes.

Currently on Alibaba platform, Cainiao intelligent warehouse delivery networks have provided overnight delivery in more than 1000 counties and districts. Tmall Supermarket has launched 1-hour delivery for its fresh products. As for cross-border field, based on Cainiao’s global logistics network, the time for Chinese goods shipped to all over the world has significantly shortened. For goods delivered to many areas, the time has dropped from 60 days to about 15 days. And goods can be delivered within 72 hours in places like Russia and Spain. As for rural delivery, Cainiao has built a delivery service that covers nearly 30,000 villages across the country.

In the new retail sector, Cainiao and logistics partners will further invest in this area in the 100 billion investment plan. Data technology will go into the field of intelligent supply chain and promote the rapid application of technological achievements in logistics performance efficiency and supply chain optimization. Smart warehousing will continue to lay out more automation and robotic operating bases and will form a smart warehouse. In terms of smart delivery, the existing delivery network will be further integrated and delivery will be competed more conveniently, diversely and safely.


This article originally appeared in Netease Technology and was translated by Pandaily.

Click here to read the original Chinese article.