Alibaba investing $15bn in logistics

With the plan to fulfil orders in China within 24 hours and worldwide within 72 hours, Alibaba has announced plans to invest RMB100bn ($15.2bn) over the next five years to strengthen its global logistics network.

As part of this, Alibaba is spending RMB5.3bn ($807m) to increase its stake in the Cainiao Smart Logistics Network from the current 47% to a controlling 51%.

Cainiao Smart Logistics runs a logistics data platform that leverages the capacity and capabilities of logistics partners to fulfil transactions between merchants and consumers at a large scale. The platform also uses data insights and technology to improve efficiency across the logistics value chain.

Alibaba’s additional $15.2bn over the next five years is to be used to increase research & development in logistics data technology, as well as development of smart warehousing, its global logistics infrastructure and smart delivery. These are core to building the company’s future global logistics network.

“Our goal with this investment is to provide comprehensive, first-class experience for consumers globally,” said Daniel Zhang, CEO of Alibaba Group.

“Our commitment to Cainiao and additional investment in logistics demonstrate Alibaba’s commitment to building the most-efficient logistic network in China and around the world. 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. We will also continue to deepen our collaboration with various logistics partners to achieve this goal.”

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