- 12 March 2019
- Transport / Logistics Services
Alibaba has invested around US $693 million in STO Express in return for a 14.6% equity stake in the Shanghai based courier firm.
According to the terms of the deal, STO Express’s biggest shareholder Shanghai Deyin Investment Holding is to set up two new subsidiaries, in which Alibaba will invest the money and take 49% on one of them. That subsidiary is to own a 29.9% stake in STO Express and therefore Alibaba 14.6%.
With the investment Alibaba and STO Express are to deepen their collaboration in the transformation of the Chinese logistics industry, to include logistics technology, last-mile pickup and delivery capabilities and new retail business-related deliveries.
“STO will further explore co-operations in areas of logistic technology, parcel delivery end and new retail logistics after the deal is closed,” the courier firm said in a statement.
Alibaba confirmed the deal in a separate statement: “We will deepen our existing collaboration with STO in technology, last-mile delivery across China and New Retail logistics,” the company said. “This investment is a step forward in our pursuit of the goal of 24-hour delivery anywhere in China and 72 hours globally.”
This tie up isn’t an unusual affair in China, with several major players already owning stakes in Alibaba’s Cainiao logistics network for example.