- 11 November 2019
- Transport / Logistics Services
Alibaba Group has increased its majority stake in Cainiao Smart Logistics Network with an additional investment of $3.3 billion.
The additional stake in the logistics and delivery factors is going to be through the purchase of newly issued ordinary shares and a ‘certain equity interest’, taking the Chinese marketplace’s interest in Cainiao from 51% to 63%.
Alibaba Group CEO and Executive Chairman emphasised the importance of logistics in its business model. “Cainiao strives to enhance service and user experience for merchants and consumers through superior technology and digital solutions, both within China and around the world. We are committed to supporting its ongoing development, to realising greater synergies throughout the entire Alibaba Economy and accelerating digitisation of the logistics industry”.
Launched in 2013, Cainiao operated as a digital platform to connect a network of express delivery companies in China, at a time when logistics routes and processes in the country were still largely undeveloped.