Cainiao and rivals gear up for Single’s Day

The Chinese logistics Cainiao Network has been urging e-commerce players to ramp up their capacity ahead of the 11/11 Single’s Day shopping festival, according to reports in the South China Morning Post.

The South China Morning Post report suggested that the Cainiao Network “is offering 1.5 bn yuan (US$228m) to its Chinese merchandisers and logistics partners to build more warehouses and improve delivery efficiency” ahead of the annual Single’s Day event on 11 November (or 11/11 – all the ones).

The newspaper in question is owned by Alibaba, as is the Cainiao Network so there is some affiliation between the two firms. The South China Morning Post quoted Shi Miao, a Cainiao VP as saying that a billion deliveries could be made in this year’s Single’s Day, and the peak will run between the 11th and 16th November.

The South China Morning Post added: “Cainiao will work with its partners to set up 40,000 pickup facilities close to residential areas which will allow consumers to fetch their goods directly instead of having to wait for them at home.

“Some 200,000 “smart” courier cabinets will also be used this year within housing estates, where parcels can be collected by customers.”

The newspaper article went on to say that “Cainiao plans to have a delivery workforce of more than three million people for this year’s event”.

While focusing on its sister company, the newspaper also mentioned rival firm’s plans to ramp up capacity at the same time, and is also subsidising its merchants’s warehousing and distribution costs. It didn’t figure as highly in the article…

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