Alibaba steps up global logistics network with majority stake in Cainiao
Alibaba has increased its investment in logistics company Cainiao as it continues to ramp up its ‘New Retail’ strategy globally.
Alibaba increases investment in Cainiao
The e-commerce giant has invested RMB5.3 billion (US$807 million) to increase its ownership from 47% to 51%, giving it a majority stake and increasing its board representation to four out of seven seats.
The move is part of Alibaba’s mission to create a global logistics network that can fulfil orders in China within 24 hours and within 72 hours anywhere in the world.
In a bid to achieve this, Alibaba plans to invest RMB100 billion (US$15.2 billion) over the next five years to help boost the company’s services including developing smart warehouses, smart delivery and global logistics infrastructure.
Daniel Zhang, chief executive of Alibaba Group, said the deal demonstrates the company’s commitment to building “the most-efficient logistic network” in China and globally.
“Our goal with this investment is to provide comprehensive, first-class experience for consumers globally.
“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.”