Alibaba announced on September 26th that it would continue to promote its "new retailing strategy" and increase its stake in Cainiao Logistics Network. Besides the RMB 10 billion it already invested, Alibaba is set to invest another RMB 100 billion in Cainiao Logistics Network within the next five years. Alibaba’s ambition is to build a world-class logistics network and improve logistics experience for consumers around the world, so that it could deliver a package in China within 24 hours and across the world within 72 hours.
According to the announcement, Alibaba will invest RMB 5.3 billion in Cainiao Network at first stage, increasing its stake from 47 per cent to 51 per cent and adding another board seat to. As a result, Alibaba will control board 4 seats out of the 7 seats in total.
As to the RMB 100 billion to be invested in Cainiao, Alibaba stated that its future investment would be used mainly in R&D of data technology and the construction of intelligent storage, intelligent delivery infrastructure and global logistics hubs, etc.
“As the new retailing strategy moves forward, Alibaba will pay more attention in enhancing business and logistics capability in its ecosystem and building an efficiency worldwide logistics network by increasing investment in key sectors,” Yong Zhang, CEO of Alibaba Group, said.
For the past few years, Cainiao Logistics Network has invested in or built by itself millions of square meters of logistics infrastructure, such as intelligent storage centers. It has teamed up with many logistics partners and created a worldwide intelligent package storing and delivering network. Besides, Cainiao has collaborated with its partners in building intelligent logistics infrastructure, such as super robotic storage centers, intelligent package dispatch centers, etc.
At present, Cainiao Logistics Network has been able to provide one-day/two-day delivery service for over 1,000 city districts and counties in China. Tmall Supermarket has also launched one-hour delivery service for fresh produce. In cross-border e-commerce sector, the delivery time of Chinese goods to places around the world has been significantly shortened. For some areas, the time has been shortened from 60 days to 15 days. For countries such as Russia and Spain, the delivery time has been shortened to 72 hours. As to rural logistics network, Cainiao has enabled its delivery service in nearly 30,000 villages across China.
As to global expansion, Cainiao Logistics Network will collaborate with its global logistics partners in building EWTP global logistics hubs, storages, etc. and providing worldwide demand-to-supply delivery solution. Next, Caibniao Logistics shall first enable 72-hour delivery service across Southeast Asia.
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Translated by Levin Feng (Senior Translator at PAGE TO PAGE), working for TMTpost.