Alibaba’s Cainiao invests 1b yuan in delivery
Cainiao, Alibaba Group Holding Ltd’s logistics offshoot, is investing 1 billion yuan ($153.6 million) in an upgraded delivery service, which it claims will offer China’s growing army of online shoppers better, faster deliveries.
The Cainiao Alliance will be dedicated to offering higher-quality delivery services. It is expected to immediately roll out the upgraded package of services, including same- day and nextday deliveries, on Alibaba’s business- to- customer site Tmall. Cainiao said the goal is for the alliance to serve 10 million enterprises and have the annual capacity to deliver 100 billion parcels in the next five to eight years.
Founded by Alibaba and a consortium of logistics companies, rather than expanding its own network, Cainiao operates a proprietary logistics information platform that links a network of providers, warehouses and distribution centers that offers better efficiency and cost savings.